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Bad news! Home loan EMIs to increase as HDFC, SBI hike interest rates. Other lenders to follow

HDFC, SBI hike home loan interest rate: Monthly home loan EMIs of HDFC and State Bank of India (SBI) customers will increase soon.

Bad news! Home loan EMIs to increase as HDFC, SBI hike interest rates. Other lenders to follow
Home loan EMIs of HDFC, SBI customers will go up soon. Representational image

HDFC, SBI hike home loan interest rate: Monthly home loan EMIs of HDFC and State Bank of India (SBI) customers will increase soon. Following the Reserve Bank of India’s decision to hike the repo rate by 50 basis points, leading lenders like the State Bank of India (SBI) and HDFC have also increased their lending rates.

SBI has hiked the repo-linked lending rate (RLLR) and external benchmark lending rate (EBLR) by 50 basis points. The lending rate hikes will push the home loan EMIs of customers of these lenders higher from the next interest reset cycle. Other lenders are also expected to increase their lending rates soon.

SBI hikes interest on EBLR, RLLR loans

The SBI EBLR has now increased to 8.55% while RLLR has gone up to 8.15%. The rate hikes will be effective from October 1, 2022. The 50 basis point increase in lending rates means the home loan interest rate of SBI would go up by 0.5%, which will translate into increased monthly EMI, depending on the loan benchmark.

A customer will have to pay 8.15% interest in the case of an RLLR loan and 8.55% in the case of an EBLR loan. However, the actual impact on EMI would also depend on various factors like CIBIL score, borrower’s profile, loan to value ratio, risk assessment, payment failure, etc.

Also Read: How will rate hike impact homebuyers, and what should they do now?

HDFC hikes interest on RPLR loans

Leading private sector lender HDFC has hiked the retail prime lending rate (RPLR) by 0.50% with effect from October 1, 2022. The increased interest rate will reflect in the monthly EMI of customers from the next reset date.

In emails sent to customers, HDFC said, “Consequent to the revision in the HDFC-Retail Prime Lending Rate (RPLR) with effect from October 1, 2022 by 0.50%, your applicable interest under ARHL scheme will increase by 0.50% with effect from your interest reset date.”

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