The hike follows a similar 35 basis points hike by the Reserve Bank of India (RBI) in its monetary policy review earlier this month. One basis point is 0.01 percentage point.
The hike in rates will be applicable for both new as well as old customers. After the hike a new home loan borrower from HDFC with a credit score of 800 and above will pay 8.65%. Borrowers below this credit score will pay 8.95% to 9.30% interest rate depending on their credit score, financial situation and whether they are salaried and self employed.
Banks and non banks like HDFC have aligned their rates to the RBI’s benchmark repo rate which has risen 225 basis points since May this year.
Both State Bank of India (SBI) and ICICI Bank the two largest mortgage lenders have increased their home loan rate by 35 basis points post the latest RBI hike on December 7.
SBI is offering new home loans at 8.75% interest rate for a credit score of 750 and above in a festive offer valid till January 31 2023 which is 15 basis points lower than its card rate of 8.90%.
ICICI Bank is also offering home loans at 8.75% for people having a credit score of 750 and above, valid till December 31 2022 which is 20 basis points below its normal rate of 8.95%.
