Mortgage financier Housing Development and Finance Corporation (HDFC) has increased its retail prime lending rate (RPLR) by 25 basis points (bps) to 15.5 per cent, with effect from March 1. The increase would affect all home loans linked to RPLR and would be applicable to new as well as existing customers, the lender said.
Since April, HDFC has increased its lending rate by 175 basis points. A 25-basis points rise translates into a increase of Rs 170 in the monthly EMI for a 20-year loan of Rs 10 lakh. RPLR is the benchmark rate to which all floating loans are linked. Actual rates are lower than RPLR, depending on the tenure and the amount.
“The revision is in line with the prevailing rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market,” HDFC said in a release. As of March 31, 2010, HDFC had 17 per cent share in the domestic home loan market.
