HDFC on Tuesday raised its benchmark lending rate by 50 basis points to 14.25 per cent, a move that would make home loans costlier.
The revised retail prime lending rate (RPLR) would be effective from September 1 and home loans up to Rs.30 lakh would increase to 9.25 per cent, HDFC said in a statement.
It said Rs.30-50 lakh home loans would attract interest rate of 9.5 per cent, up from 9 per cent, while the interest rate on loans above Rs.50 lakh would be higher by 50 basis points at 9.75 per cent for the floating loan.
HDFC follows a three-month reset cycle for its floating rate loans and hence the change in RPLR will impact all the existing customers over the next three months depending on their date of first disbursement.
It said the increase in RPLR is for the first time in two years, since August of 2008. The hike is in line with the current rates of interest in the economy, which have hardened in the last few months due to rising inflation and tightening of liquidity in the domestic market, HDFC added.