HDFC home loan will get expensive, your EMI will increase

HDFC Limited has announced an increase of 50 basis points in its lending rate. This will increase the EMI of the company’s home loan.

This will increase the EMI of the company’s home loan.

HDFC Limited has announced an increase of 50 basis points in its lending rate. This will increase the EMI of the company’s home loan. Earlier, the Reserve Bank of India (RBI) had announced an increase in the repo rate to control inflation. The country’s largest housing finance company said in a statement that HDFC has increased the Retail Prime Lending Rate (RPLR) on housing loans, at which its Adjustable Rate Home Loan (ARHL) benchmarks. The company said that it has announced an increase of 50 basis points, which will be applicable from October 1, 2022.

Rate hiked for the 7th time in the last five months

HDFC has increased the loan rate for the seventh time in the last five months. After the RBI hiked the key policy rate by 50 basis points on Friday, other banks and financial institutions are also expected to increase their loan interest rates.

Let us tell you that the Monetary Policy Committee (MPC) of the Reserve Bank of India had announced to increase the repo rate from 5.40 percent to 5.90 percent. This is the highest level of this rate since April 2019. This committee consists of three members from RBI and three external experts. Five out of six members voted in favor of the rate hike.

What did RBI say in monetary policy?

Along with this, the SDF rate has also been increased by half a percent. With inflation reaching back to 7 per cent in August, there were speculations that the central bank would continue to take a tough stance on rates. Earlier, the Federal Reserve had also increased interest rates sharply. After which central banks around the world have also shown strictness.

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According to the governor, due to these steps, inflation is expected to come down in the coming time and the inflation rate can come down to 6 percent between the second half i.e. October to March, which is currently at the level of 7 percent. The Reserve Bank estimates that between January and March, the inflation rate will come within a satisfactory range of 2 to 6 percent.