EMIs on home loans likely to rise as HDFC rises lending rate by 35 basis points to 8.65% from December 20

Housing Development Finance Corporation (HDFC) on Monday announced a 35 basis points (bps) rise in its retail prime lending rate, with this the minimum rate will now be at 8.65 per cent.

The mortgage leader revised rates would be effective from Tuesday, December 20, 2022.

The retail prime lending rate on housing loans, on which the adjustable-rate home loans are benchmarked, has been increased by 35 basis points to 8.65 per cent onwards, effective December 20, HDFC said in its exchange filing.

HDFC has cumulatively increased its lending by 225 bps since May.

The repo rate currently stands at 6.25 per cent, the same as the pre-pandemic level.

HDFC said the new rate of 8.65 per cent will be available only for those borrowers with a credit score of 800 and above. This is the lowest rate in the industry, it added.

Shares of HDFC on Monday closed over 1.5 per cent higher to Rs 2710.45 per share on the BSE as compared to 0.76 per cent rise in the S&P BSE Sensex.

The lowest lending rate of SBI, which leads the market in home loan AUM with over Rs 6 lakh crore, is 8.75 per cent for those with a credit score of 750-plus. This rate is part of its ongoing festive offer that will last till January 31, 2023. The bank's normal rate is 8.90 per cent for those with credit score of 800 plus.

Similarly, ICICI Bank's festive offer rate begins at 8.75 per cent and has a condition of 750 plus credit score. Its special rate ends on December 31. The bank's normal rate is 8.95 per cent onwards.

With PTI Inputs