The country's largest housing finance company Housing Development Finance Corporation (HDFC) Ltd on Tuesday said it has increased its Retail Prime Lending Rate on housing loans, on which its Adjustable Rate Home Loans are benchmarked, by 25 basis points, with effect from March 1, 2023.

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"HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points, with effect from March 1, 2023," said the company in a press release statement.

According to HDFC, it offers an adjustable-rate loan also known as a floating rate loan as well as a trufixed loan in which the interest rate on the home loan remains fixed for a specific tenure after which it converts into an adjustable-rate loan.

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In February, the Reserve Bank of India hiked the key benchmark policy rate by 25 basis points to 6.5 percent, citing sticky core inflation. This is the sixth time the interest rate has been hiked by RBI since May last year, taking the total quantum of the hike to 250 basis points.

Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) by a majority decided to raise the policy repo rate by 25 basis points and keep a 'strong vigil' on the inflation outlook. "Policy rate at 6.5 percent still trails the pre-pandemic level," Das said, adding that core inflation will remain sticky.

The RBI has projected India's economic growth at 6.4 percent for 2023- 24. Gross Domestic Product (GDP) growth is estimated at 7 percent in 2022-23, according to the first advance estimate of the National Statistical Office (NSO).

(Edited by : Pradeep John)