HDFC Bank Raises Interest Rates: HDFC Bank recently increased its interest rates for home loans by 10-15 basis points, now ranging between 9.05 percent to 9.8 percent as of March. This adjustment, according to the bank, is a result of the merger between HDFC Bank and HDFC on July 1, 2023.
The bank stated on its website that the applicable interest rate for customers’ accounts will now be linked to EBLR (external benchmark lending rate) instead of RPLR. This change is in line with regulatory guidelines regarding floating interest rates. Importantly, the bank clarified that there will be no immediate change in the rate of interest (ROI) on the day of the merger. Any future adjustments will be based on EBLR.
This move marks a significant transition in how HDFC Bank calculates and applies interest rates for its customers’ home loans. In Mumbai, India, you’ll find the headquarters of HDFC Bank. Recently, HDFC Bank decided to increase the rates for new home loans. This decision was made even though the repo rate, which is the rate at which the central bank lends to commercial banks, remained unchanged.
Despite the stability in the repo rate, HDFC Bank went ahead with raising the rates for new home loans. This move may have implications for individuals seeking to borrow money to purchase a home or property.
The decision made by HDFC Bank highlights its independent approach to setting interest rates, separate from the fluctuations in the repo rate. This action could influence the broader lending landscape in the housing market.
The lending rate linked to the Reserve Bank of India’s (RBI) repo rate, known as the repo-linked lending rate, has remained the same at 6.50 percent since April 2023. This means that despite no changes in the central bank’s repo rate, HDFC Bank still decided to increase its home loan rates.
It’s not just HDFC Bank that offers home loans; other major private and public sector banks also provide similar services. These banks offer home loan interest rates ranging from 8.70 percent to 10.05 percent. For example, ICICI Bank offers home loan interest rates ranging from 9 percent to 10.05 percent, and these rates are valid until March 2024, according to information on its website.
This information highlights the range of options available to individuals looking to secure a home loan. Despite the consistency in the central bank’s repo rate, banks have the autonomy to set their interest rates for home loans, which can vary among different financial institutions.
State Bank of India (SBI) offers home loan interest rates ranging from 9.15 percent to 10.05 percent, as stated on their website. Similarly, Axis Bank provides home loan interest rates between 8.75 percent to 9.65 percent, according to information available on their website.
For those considering Kotak Mahindra Bank for a home loan, they can expect interest rates starting at 8.70 percent, as mentioned on the bank’s website. These varying rates reflect the competitive nature of the home loan market, where different banks offer different rates to attract customers.
Potential homebuyers have a range of options to choose from when it comes to securing a home loan. Understanding the interest rates offered by various banks can help individuals make informed decisions about their borrowing needs.
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