HDFC, PNB increase lending rates on home loans, homebuyers will have to pay higher EMIs

HDFC Bank and PNB have increased the lending rates on home loans from today (June 1, 2022).

New Delhi: HDFC Bank and Punjab National Bank (PNB) have increased the interest rates on home loans from today (June 1, 2022). The decision comes a few weeks after the Reserve Bank of India (RBI) increased repo rates by 40 basis points or 0.04%. Following RBI’s off-cycle rate hike, several lenders have increased the interest rates on home loans and other types of mortgages. With the latest revision by HDFC and PNB, homebuyers will have to pay higher monthly EMIs. 

HDFC Bank hiked its retail prime lending rate (RPLR) on housing loans by 5 basis points or 0.05%. For the unversed, the adjustable rate home loans (ARHL), often called floating rates, depend on RPLP. 

On the other hand, state-owned PNB has increased the marginal cost of funds-based lending rate by 15 basis points or 0.015%. According to a regulatory filing, the new interest will be applicable from June 1. PNB’s one-year MCLR rate has now been increased to 7.40% from 7.25%. 

Besides PNB and HDFC Bank, several other public and private lenders have recently increased the interest rates on home loans. For instance, the State Bank of India (SBI) and Bank of Baroda (BoB) increased the MCLR on home loans across tenures last month. 

PNB had announced a hike on home loans last month. At that time, PNB chief Atul Kumar Goel said that the bank will raise the repo-linked lending rates from next month, adding that interest rates are certain to rise a tad going further. Also Read: Bye-bye errors and typos! WhatsApp bringing edit option feature soon

"With 40 bps rise in repo rate... So according to our policy, from June 1, the same quantum raise in lending rates will be there. So there will be some increase in the loan rate for sure," he added. Also Read: Pay more for PM Jeevan Jyoti Bima, Suraksha Bima from today, June 1: Check new rates