HDFC hikes loan rates 50 basis points
Housing Development Finance Corporation (HDFC) raised home loan rates by 50 basis points across all segments on February 1, 2006. The new rates will take effect from February 2, 2006.
Its floating-rate home loan will now cost between 8 per cent and 8.75 per cent, depending on the size of a loan. Similarly, the fixed-rate home loan will go up to 9.25-10 per cent.
Yet another home loan product, fixed-rate loans with money market options (in this case, a rate is set for the first two years), will now cost between 8.75 per cent and 9.25 per cent.
HDFC has hiked its prime lending rate to 11.25 per cent.
HDFC has become the first financial intermediary to raise lending rates after a 25-basis-point reverse repo rate hike by the Reserve Bank of India last week. Other players are expected to follow suit.
ICICI Bank had last month raised its benchmark prime lending rate by 25 basis points to 11.25 per cent. With this, all loan rates of the private sector bank went up.
Bank of Baroda was the first to increase deposit rates by 25 basis points after the reverse repo rate hike.