Effective from Sunday, there was a hike in the rates for home loans by the biggest mortgage lender of the county, the Housing Development Finance Corporation. The retail prime lending rate (RPLR) for Non-banking finance company else known as NBFC was raised from 16.65% to 16.75%.
There was no official announcement made in regards to the increase of the interest rate. All the company did was updated the official website, where the new rates was displayed, has been the recent practice. The hike on the interest rate came soon after State Bank of India (SBI) which is the closest competitor had increased their base rate to 10% from 9.82%, a hike of 20 bps. This was after the move made on October 29 by RBI in regards to increasing the repo rate by 25 bps.
The home loans of HDFC are costlier in comparison to SBI. The homes loans of SBI start at 10.3% for the loans which are up to Rs.30 lakhs. For the loans above Rs.30 lakhs, the interest rate is 10.5%