HDFC Raises Retail Lending Rates By 50 Bps

Housing Development Finance Corporation has hiked its retail prime lending rates by 50 basis points, on which its adjustable rate home loans (ARHL) are benchmarked, effective April 1. For all new home loan customers, the ARHL (floating) loans will now be priced at 11.25 per cent per annum while the fixed rates will be at 13.25 per cent per annum. The housing finance company clarifies that this is in line with the rates of interest in the economy, which have hardened due to rising inflation. Also bond prices have moved up by about 200 basis points in the past few months raising borrowing costs of triple-A companies. And also, it has raised its prime lending rate by one percentage point to 15 per cent per annum against 14 per cent earlier. The revised rates will be effective April 3. HDFC has also increased its deposit rates by 0.75 per cent across all maturities. HDFC''s premium and premium plus deposit schemes are being extended till April 30.