Mortgage lender HDFC has increased its retail prime lending rate (RPLR) by 10 basis points (bps), making housing loans costlier for new borrowers.

One basis point is a hundredth of a percentage point.

The new rates range from 8.90 to 9.15 percent on various slabs of loans.

HDFC has increased its RPLR, on which its adjustable-rate home loans are benchmarked, by 10 bps with effect from January 1, 2019, the mortgage lender said in a statement.

The move is likely to be followed by other lenders raising rates in the new year as cost of funds is on the rise.

For HDFC borrowers, home loans up to Rs 30 lakh will now be available at 8.95 percent (8.90 percent for women) and those above Rs 30 lakh but less than Rs 75 lakh will be available at 9.10 (9.05 percent for women).

Country's largest lender and HDFC's prime competitor in the mortgage market SBI had hiked its marginal cost of borrowing based lending rate by 0.05 percent in December.

The RBI had hiked its key rates in quick succession midway through 2018, before pausing as inflation ebbed.

First Published:Dec 31, 2018 8:21 PM IST