HDFC ups interest rates on housing loans

MUMBAI: Home loans from market leader HDFC will cost more, with the lender announcing upward revision of interest rates with retrospective effect from April one.

HDFC has increased its retail prime lending rate (RPLR) on which its adjustable rate home loans (ARHL) are benchmarked by 0.50 per cent, it said in a statement issued here on Monday.

For all new home loan customers, the adjustable rate home loans will now be priced at 11.25 per cent while the fixed rates will be 13.25 per cent.

The increase in RPLR will affect existing borrowers whose loans come up for re-pricing on or after April one, the company said.

HDFC follows a three-month reset cycle for its floating rate loans and hence the change in RPLR will impact the existing customers only over the next three-month period based on their respective date of disbursement.

HDFC said that "this is a moderate increase in the present environment keeping in mind the needs of our customers and their concerns."

Meanwhile, HDFC has also increased its rates on deposits by 0.75 per cent across all maturities and its premium and premium-plus deposit schemes have been extended till April 30.