look news india
HDFC Bank Home Loan: HDFC Bank, the largest private sector bank, has given a big shock to its customers. Before the beginning of the new financial year, the bank has decided to increase the interest rates on home loans to the customers. HDFC Bank has increased interest rates on its repo-linked home loans by 10-15 basis points. After this increase, loan rates have come in the range of 8.70 to 9.8 percent.
According to the information received from the bank's website, this change in home loan rates is due to the merger of HDFC Bank and HDFC and now it will not be linked to the Retail Prime Lending Rate (RPLR).
Bank issued FAQ
According to the FAQs issued by the bank, the interest rate applicable on your account will now be linked to EBLR (External Benchmark Lending Rate) instead of Retail Prime Lending Rate (RPLR). This is in compliance with the regulatory guidelines on floating interest rates. There will be no change in ROI post merger and any future changes will be based on EBLR. The bank has clarified that the new repo linked interest rate is applicable to new customers. Old customers can continue RPLR.
What are the repo rates?
External benchmark lending rates are linked to the RBI repo rate. At present the current repo rate is 6.50 percent. Repo rate is the interest rate at which the central bank of India i.e. Reserve Bank of India (RBI) lends to commercial banks. On this basis, the EMI of the loan takers is decided.
What are the home loan rates in other banks?
Home loan rates in ICICI Bank range between 9 percent to 10.05 percent. Home loan rates of State Bank of India range from 9.15 percent to a maximum of 10.05 percent. Whereas Axis Bank is giving home loans to its customers at the rate of 8.75 to 9.65 percent. At the same time, Kotak Mahindra Bank is giving loan to customers at the rate of 8.70 percent.
