HDFC Ltd increased its benchmark lending rate by 5 basis points on Sunday, increasing the EMI for current customers.
Other banks, such as the State Bank of India and Bank of Baroda, have raised interest rates as well recently.
HDFC raises its Retail Prime Lending Rate (RPLR) on Housing loans, against which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, effective May 1, 2022, the firm stated in a statement.
There has been no change in lending for the new borrowers. The rates for new borrowers range from 6.70 per cent to 7.15 per cent, relying on credit and loan amounts.
SBI and other lenders boosted benchmark lending rates last month, increasing EMIs for current clients.
Interest rates are projected to rise in the next months as global inflationary worries have been heightened by geopolitical tensions, primarily the Russian invasion of Ukraine. This caused the Reserve Bank to boost its inflation goal earlier this month.
Even while the key repo rate, or short-term lending rates to banks, remained constant, the RBI stated that moving forward, it will focus on withdrawing accommodation to ensure that inflation remains within the target range.
The RBI has been tasked with maintaining retail inflation at 4%, with a 2% tilt on each side.