HDFC hikes home loan rates by 0.5%

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posted on 18 years ago — updated on 1 second ago

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India's leading private sector bank HDFC Ltd has hiked home loan rates by 0.5 per cent across the board with effect from February 1, 2006.

New Delhi: India's leading private sector bank HDFC Ltd has hiked home loan rates by 0.5 per cent across the board with effect from February 1, 2006.

This means you will have to pay Rs 30 more per lakh on each EMI. So if you have taken or are planning to take Rs 20 lakh loan for 20 years, you will have to pay back an additional Rs 1.5 lakhs.

The fixed rate for loans of Rs 5 lakh and above would go up to 9 per cent, while in case of floating rates, it would go up to 8.25 per cent.

HDFC said it has increased the rates to maintain the margin between home lending rates and deposit rates.

Last week ICICI bank had indicated that it would also look at raising interest rates.

HDFC's move to increase the lending and deposit rates comes days after the Reserve Bank hiked repo and reverse repo rates (at which it buys and sells bonds to commercial banks) by 0.25 per cent, signaling hike in short term rate.