Housing Development Finance Corporation (HDFC) on Saturday increased its retail prime lending rate (RPLR) on housing loans by 25 basis points (bps). The new lending rates will come into effect from August 1.
This is the first hike in RPLR rates by HDFC in the quarter ended September 30. The company had last raised its lending rates by 50 bps in June, following the hike in policy repo rate by the Reserve Bank of India by 50 bps in the same month.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its adjustable rate home loans (ARHL) are benchmarked,” the lender said in an exchange filing.
As of now, the lender is charging adjustable interest rates between 7.55% and 8.05% on home loans, as per information on its website. This interest rate will increase by 50 bps from August 1. For home loans up to Rs 30 lakh, the interest rate currently stands between 7.65-7.15% for women, while the rate for others on same loan amount stands at 7.70-8.20%. For loans between Rs 30 lakh and Rs 75 lakh, HDFC is charging interest rate of 7.95-8.45% while for home loans above Rs 75 lakh the lender is levying rate of 8.05-8.55%.
HDFC reported a contraction of 10 basis points (bps) in its net interest margin (NIM) on a sequential basis to 3.4% as of June 30, as the lender saw its borrowings getting repriced faster than its loans. As repo rate hikes are transmitted to a larger part of the loan book, HDFC expects the NII growth to improve in next few quarters.