The Housing Development Finance Corporation increased its lending rates on Saturday housing loans by 30 basis points, or 0.3%, for all of its customers. The revision will come into effect from May 9 on all tiles, ANI reported.
The move came three days after the Reserve Bank of India raised the repo rate by 40 basis points to 4.40%. The repo rate is the interest rate at which the central bank lends to commercial banks. Typically, banks and other credit institutions raise interest rates for their customers once the repo rate is increased.
HDFC’s revised loan rates will apply to existing and new customers of the lender.
The RBI raised the repo rate earlier this week in a bid to rein in India’s retail price inflation, which accelerated to a 17-month high of 6.95% in March. It was the third month in a row that the rising price indicator was above the upper limit of 6% imposed by the central bank. Retail price inflation is expected to rise further due to the surge in oil prices since Russia’s invasion of Ukraine drove up consumer prices.