HDFC raises lending rates by 0.10 per cent, makes home loan dearer

In what can act as a dampener for home loan borrowers, largest pure play mortgage lender HDFC Monday announced a 0.10 per cent hike in lending rates in the New Year 2019.

The move comes amid a system-wide hike in lending rates due to tight liquidity and as a reaction to previous rate hikes by the RBI.

"HDFC has increased its retail prime lending rate on which its adjustable rate home loans are benchmarked, by 0.10 per cent with effect from January 1, 2019," the company said in a statement to exchanges late this evening.

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 per cent earlier this month.

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