Private sector lending major, HDFC Ltd has increased interest rates on home loans by 25 bps. The interest rates have been raised for both new and old borrowers.
The retail prime lending rate (RPLR) of the Housing finance company (HFC) has been raised to 15.5%. The floating rates of interest are benchmarked on RPLR.
The major reason behind the raising of rates is in line with the policy rate hike by Reserve Bank of India in monetary policy review. The apex bank raised policy rates as a step to manage rising inflation rates.
HDFC had hiked its rates recently on February 1, by 25 bps.