Mumbai: Two leading private sector banks in the country, HDFC Ltd and Punjab National Bank hiked the interest rates on loans. Home loans will become costlier after the rate hike.
‘HDFC increases its retail prime lending rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 5 basis points, with effect from June 1, 2022’, said HDFC in a statement.
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The new interest rates for HDFC customers range from 7.05% to 7.50% depending on the category of borrower and loan amount. The leading bank has increased the retail prime lending rates by 5 basis points for all customers. HDFC had previously hiked its RPLR by 30 basis points effective May 9, 2022.
Punjab National Bank has hiked its marginal cost of funds based lending rate (MCLR) by 15 basis points. The new rate is effective from Wednesday. The MCLR rate for one-year tenure is 7.4% and 3-year tenure is 7.7%. The base rate (8.5%) and RLLR (6.9%) will remain unchanged.
Most of the loans are linked to the one-year MCLR rate. MCLR is the lowest interest rate that a bank or lender can offer.
The decisions were taken as the Reserve Bank of India hiked the repo rate by 40 basis points to tackle inflation.
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