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HDFC Home Loan Rate: HDFC raises home loan rate for third time in a month


Mumbai: Housing Development Finance Corp Ltd (), India’s largest mortgage lender, raised its retail prime rate (RPLR) – the benchmark indicator for home loans to borrowers – by 5 basis points (bps), its third increase in a month.

A basis point is one hundredth of a percentage point.

The latest increase means that the minimum rate for a borrower with a credit score of over 780 is now 7.05%, down from 7%.

HDFC, which finances four of the 10 financed homes in the country, raised interest rates for existing borrowers by a cumulative 40 basis points.

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

The repo rate is the rate at which banks borrow from RBI. CRR is the percentage of deposits that banks are required to hold with RBI without earning interest.

The latest increase means that borrowers below a credit score of 780 will have to pay a minimum of 7.15% for loans up to 30 lakh and 7.40% for loans between 30 lakh and 75 lakh.

Loans above 75 lakh will be charged 7.50%.

HDFC offers a 5 basis point discount to female borrowers in all categories.

Separately, ICICI Bank also increased its marginal cost of lending rate (MCLR) by 30 basis points across all mandates, its first borrowing rate change since July 2021.

Updated rates on its website showed the overnight and one-month MCLR increased to 7.30% effective June 1.

A spokesperson for ICICI Bank confirmed the hike was the first in more than a year and its first such rate action since it cut the MCLR by 5 basis points in July 2021.

The 30 basis point rise means that the three-month MCLR is now at 7.35%, the six-month MCLR at 7.50% and the one-year MCLR at 7.55%.

The three-month MCLR of public sector lender State Bank of India (SBI) is 6.85%, the six-month at 7.15% and the one-year at 7.20%.


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