The country's largest mortgage lender, Housing Development Finance Corporation (HDFC), announced a 0.30 percent increase in its home loans on Saturday, just three days after the Reserve Bank of India (RBI) raised the policy repo rate. "With effect from May 9, 2022, HDFC will increase its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 30 basis points," the bank said in a statement.
Even before the RBI announced a rise in policy rates on May 4, financial institutions began boosting lending rates. On May 2, HDFC increased the Retail Prime Lending Rate by 0.05 percent, regardless of the loan amount.
Other lenders, including State Bank of India, Axis Bank, ICICI Bank, and Bank of Baroda, have raised their lending rates as well. In an unplanned meeting on May 4, the Reserve Bank of India's Monetary Benchmark Committee decided to raise the policy repo rate by 40 basis points to 4.40 percent with immediate effect.
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