HDFC raises lending rates by 25 bps

Housing mortgage lender HDFC on Tuesday increased the retail prime lending rate for both existing and new customers by 25 basis points (bps) with effect from Tuesday itself.

"HDFC has increased its retail prime lending rate (RPLR) on which its Adjustable Rate Home Loans (ARHL) is benchmarked, by 25 bps with effect from February 1," it said.

The lender said rate hike has been done in line with hardening of interest rates in the economy.

Last week the Reserve Bank had hiked its key policy rates by 25 basis points, each, to check rising inflation. Following the hike, many lenders had said they would hike interest rates.

"HDFC follows a three month reset cycle for its floating rate loans and hence the change in RPLR will impact all the existing customers over the next three month period depending on their date of first disbursement," it added.