Mumbai: HDFC has increased its retail prime lending rate (PLR) by 25 basis points (100bps = 1 percentage point) from March 1. The corporation has simultaneously launched a special offer where home loans will be available at 8.7% to borrowers with a credit score over 760 until March 31, 2023.
HDFC has also revised interest rates on its ‘Diamond deposits’ for senior citizens to 8% for a tenure of 75 months from 7.9% earlier. There is an additional interest of .05% for individual deposits placed through the corporation’s online system. Deposit rates increased by 10-20bps across the board.
While HDFC’s loan rack rates were 8.95% earlier, an ongoing scheme enabled borrowers to get new home loans at 8.45%. Along with the revision in the PLR, the rates under the special offer stand revised to 8.7%. Besides the minimum credit score, borrowers must avail of at least part disbursement before March 31 to get the lower rates. The rate is irrespective of the loan amount and gender. Earlier, woman borrowers were getting a lower rate.
Despite the increase, HDFC’s special offer rates are lower than the home loan rates of State Bank of India and ICICI Bank. SBI’s home loan rates begin at 8.85%, while ICICI Bank’s start at 9%.
Meanwhile, Punjab National Bank (PNB) has also increased its marginal cost of funds-based lending rate (MCLR) by 10bps across all tenures. The MCLR is used as a benchmark to price older retail loans, and loans to businesses. The revisions in interest rates are in the wake of a 25bps increase in benchmark rates by the RBI earlier in February.
Source: timesofindia.indiatimes.com