In a move that will increase EMI for existing borrowers, mortgage lender HDFC on Sunday 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 May 01, 2022.

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However, for new customers, the rates will remain unchanged. The rate for new customers for up to Rs 30 lakh will be 6.80 whereas for above Rs 30 lakh and up to Rs 75 lakh will be 7.05. The rate for above Rs 75 lakh is 7.15.

The RPLR for new women customers for up to Rs 30 lakh, Rs 30 lakh to Rs 75 lakh, and above Rs 75 lakh will be 6.75, 7.00, and 7.15 respectively.

Last month, SBI and other lenders raised benchmark lending rates, pushing EMIs for the existing customers.

Interest rates are expected to harden in the coming months as global inflationary fears have been stoked due to geopolitical tensions, mainly due to the Russian invasion of Ukraine. This prompted the Reserve Bank earlier this month to raise the inflation target.

Even as it kept unchanged the key repo rate or the short term lending rates to banks, the RBI said going further it will focus on withdrawal of accommodation to ensure that inflation remains within the target.

The RBI has been mandated to keep the retail inflation at 4 percent with a bias of 2 percent on either side.

With inputs from PTI

(Edited by : Priyanka Deshpande)

First Published:May 1, 2022 2:18 PM IST