The country?s largest private bank, ICICI Bank, and the largest mortgage lender, Housing Development Finance Corporation (HDFC), on Monday raised interest rates on housing loans in response to the tightening of monetary measures by the Reserve Bank of India (RBI) last week.
HDFC revised its home loan rates effective Tuesday by increasing its retail prime lending rate by 0.50%. For new customers, the mortgage and finance company?s adjustable loans will now be priced at a minimum of 11%, and its fixed rates at 14%. These changes will impact HDFC?s existing customers only over the next three months, which is the reset cycle the company follows. HDFC has also increased its rates on deposits by 0.50% across most maturities.
ICICI Bank, meanwhile, announced an increase in interest rates for its fixed deposits of less than Rs 15 lakh by 0.50%-1.00% effective Tuesday. The bank has also announced an increase of 0.75% in its floating reference rate to 13.50% for its consumer loans, including home loans, with effect from June 30. For existing floating rate customers, the increase in rates will be effective from July 1.
