New Delhi: Home loans are set to get expensive as mortgage lender Housing Development and Finance Corporation (HDFC) on Wednesday increased their rates. While HDFC has raised Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points, PNB has increased its marginal cost of funds-based lending rate by 15 basis points. One basis point is equivalent to one-hundredth part of a percentage point. The new rates will come into effect from today itself.Also Read – Punjab National Bank Hikes Service Charges On NEFT, RTGS, NACH And Immediate Payment Service Transactions
“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 in a statement on Wednesday. Depending on the category of borrower and loan amount, the new interest rates for HDFC customers range from 7.05 per cent to 7.50 per cent. Earlier this month, the mortgage lender had hiked its RPLR by 30 basis points. Also Read – Bank Holiday Today On Account of Buddha Purnima. Check States Where Banks Will Be Closed
HDFC Home Loans Interest Rates Also Read – Loans To Become Dearer As Several Banks Hike Lending Rates After RBI’s Repo Rate Increase. Details HERE
|Loan Slab||Home Loan Interest Rates (% p.a.)|
|For Women* (upto 30 Lakhs)||7.05 – 7.55|
|For Others* (upto 30 Lakhs)||7.10 – 7.60|
|For Women* (30.01 Lakhs to 75 Lakhs)||7.30 – 7.80|
|For Others* (30.01 Lakhs to 75 Lakhs)||7.35 – 7.85|
|For Women* (75.01 Lakhs & Above)||7.40 – 7.90|
|For Others*(75.01 Lakhs & Above)||7.45 – 7.95|
Similarly, PNB has also increased its marginal cost of funds-based lending rate by 15 basis points or 0.15% across all tenures, consequently leading to an increase an EMIs for borrowers. The latest rates will come into effect from June, 1, the bank said into its regulatory filing.
How MCLR Would Impact Loan Borrowers?
MCLR (Marginal cost of funds based lending rate) is the lowest interest rate that a bank or lender can offer. Most banks cannot offer interest rates lower than the marginal cost of funds based lending rate. However, certain exceptions can be made when allowed by the Reserve Bank of India (RBI).
The main aspects while calculating MCLR:
- Marginal cost of funds
- Operating costs
- Cost of Carry in the Cash Reserve Ratio (CRR)
- Tenor premium
Notably, the banks will have to fix interest rates for different types of customers on the basis of the MCLR. Taking into consideration the repo rate and other lending rates, banks revise the MCLR on a monthly basis. Five benchmark rates are required for different tenures which range from 1 day to 1 year.
The banks are free to set rates for tenures exceeding 1 year. Banks cannot lend below the MCLR but there are a few exceptions. For loans against deposits and loans to employees of the respective bank, banks can lend below the MCLR.