HDFC Bank hikes Home Loan Interest Rates, Repo Rate stays Same; Know the Reason
India’s biggest Private Sector lender, HDFC Bank has gradually increased its home loan interest rates since January of this year.
The HDFC hiked the rates despite that RBI kept the repo rate stable since April of 2023. This increase in rates is only applicable to newly sanctioned loans, so older borrowers will stay unaffected.
As per the revised rates, the lowest rate now is 8.70%. Previously it was 8.35% on a home loan worth Rs.50 Lakh in January this year.
A couple of months back before the merger of HDFC Ltd with HDFC Bank, the bank was assertively offering the home loan with an 8.30% to 8.45% interest rate. After the merger happened, HDFC Bank boosted the portfolio rates, which cited an increase in funding costs, this may be one of the causes for the hiking in loan rates.
As per the interest rates data released by a lending company, the other banks such as Axis Bank and Karur Vysya Bank also upped their new home loan interest rates by 5 basis points. The new rates are 8.75% and 9% respectively.
Nationalized lenders of India like State Bank of India, Bank of Baroda and Bank of India have not raised their home loan interest rates.
