HDFC, Indian Overseas among others to follow RBI's trail; hikes home loan interest rates

10 Jun 2022 , 09:45 AM

On Wednesday, the Reserve Bank of India announced a 50-bps hike in Repo Rate. Following this, many banks have already made an upward revision in their Lending Rates.

Yesterday, four major banks namely, Indian Bank, ICICI Bank, Bank of India, and Punjab National Bank has announced a 50-bps hike in their Retail Prime Lending Rate (RPLR), taking a cue from RBI’s move.

One of the major housing finance providers in India, Housing Development Corporation of India, has increased its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable-Rate Home Loans (ARHL) are benchmarked, by 50 basis points. The new rates are effective from June 10, 2022.

Indian Overseas Bank is yet another lender in line to increase its Repo Linked Loan Rate (RLLR) by 50 basis points to 7.75% (i.e., 4.90% + 2.85% = 7.75%), to be effective from June 10, 2022.

Karur Vysya Bank, one of the leading Scheduled Commercial Banks in India, has also increased its External Benchmark Rate - Repo Linked (EBR-R) effective from June 9, 2022. The bank has hiked EBR-R from the existing 7.45% to 7.95%, following the revision in Repo Rate.