Mortgage financier Housing Development and Finance Corporation (HDFC) increased 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 Wednesday, June 1.

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HDFC’s adjustable-rate home loans for borrowers with a credit score of above 780 will now be 7.05 per cent.

The rate for customers borrowing up to Rs 30 lakh will be 7.15 and for women customers, it will 7.10. For loans above Rs 30 lakh and up to Rs 75 lakh, the rate will be 7.4, whereas, for women customers, it'll be 7.35. The rate for above Rs 75 lakh has been fixed at 7.5 and for women, at 7.45.

Last month as well, HDFC hiked its RPLR. However, for new customers, the rates remained unchanged.

Earlier, the State Bank of India (SBI) and other lenders raised benchmark lending rates, pushing EMIs for the existing customers.

Several other banks had also revised interest rates on fixed/bulk deposits. IDFC First Bank raised interest rates on fixed deposits above Rs 2 crore with effect from May 27, 2022.

Meanwhile, ICICI Bank hiked the interest rates of its fixed deposits for the second time this month. The new rates were applicable on deposits above Rs 2 crore to Rs 5 crore with effect from May 27, 2022.

This came after the Reserve Bank of India (RBI) was mandated to keep the retail inflation at 4 percent with a bias of 2 percent on either side.

Reports claimed that interest rates are expected to rise in the coming months as global inflationary fears have been stoked, mainly due to the Russian invasion of Ukraine.

(Edited by : Akriti Anand)