HDFC home loan rate: HDFC hikes home loan rate for the third time in a month

Hosuing Development Finance Corp Ltd (), India’s largest mortgage lender that funds four of ten financed homes in the country, has hiked its retail prime lending rate (RPLR) – the reference gauge for home loans to borrowers – by 5 basis points, its third increase in a month.

One basis point is 0.01% percentage point.

The latest bout of increase means the minimum rate for a borrower with a credit score of above 780 from HDFC is now at 7.05%, up from 7%. It has how increased interest rate for existing borrowers a cumulative 40 basis points.

Earlier on May 1 it had hiked its benchmark rate by 5 basis points and followed it up with a 35 basis point hike on May 7, following the Reserve Bank of India‘s (RBI) surprise 40-basis point rise in its benchmark repo rate and 50-basis point increase in cash reserve ratio (CRR) on May 4.

Repo rate is the rate at which banks borrow from RBI. CRR is the percentage of deposits banks need to compulsorily maintain with RBI without earning interest.

The latest increase means borrowers below a credit score of 780 have to pay a minimum of 7.15% for loans upto Rs 30 lakh ansd 7.40% for loans between Rs 30 lakh and Rs 75 lakh. Loans above Rs 75 lakh will be charged 7.50%. HDFC offers a 5 basis points discount for women borrowers in all categories.