HDFC hikes home loan rates by 50 basis points

MUMBAI: India's top home loan lender HDFC on Tuesday increased lending rates by 0.50 per cent in the wake of Reserve Bank of India hiking key short term interest rates.

However, HDFC has not changed interest rates on deposits, bank sources said here. With this hike, the floating rate for home loans will be 9.5 per cent as against the previous 9 per cent, while the new fixed rate will be 11 per cent from 10.5 per cent earlier.

The primary lending rate of the banking major will be 12.25 per cent against earlier 11.75 per cent.  The Reserve Bank of India had hiked its short term lending and borrowing rates by 0.25 per cent, a week ago, aiming to keep a check on rising inflation.

Following this, many banks, including ICICI Bank and State Bank of India, had indicated they would hike their home and auto loan rates.