HDFC raises interest rate by 5 bps; ICICI Bank raises MCLR by 30 bps

As of December 2021, a little over 39% of banking system loans are linked to the external benchmark, shows RBI data

Mortgage lender Housing Development Finance Corporation (HDFC) has raised interest rates on its home loans again, this time by 5 basis points, effective June 1. It had raised rates by 30 basis points last month post the hike in repo rate in an off-cycle meeting by the monetary policy committee (MPC).

“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”, HDFC said.

Hence, interest rates for new customers have gone up by 35 basis points since May and