HDFC, PNB hike lending rates on home loans, get ready to pay more in EMIs

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

HDFC Bank increased its retail prime lending rate (RPLR) on housing loans by 5 basis points or 0.05%. For the unversed, the Adjustable Rate Home Loan (ARHL), often referred to as the floating rate, depends on the RPLP.

State-owned PNB, on the other hand, 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. The one-year MCLR rate of PNB has now been increased from 7.25% to 7.40%.

Apart from PNB and HDFC Bank, several other public and private lenders have increased interest rates on home loans recently. For example, State Bank of India (SBI) and Bank of Baroda (BoB) increased the MCLR on home loans during the tenure last month.

PNB had announced a hike in home loans last month. At the time, PNB chief Atul Kumar Goel had said that the bank would increase repo-linked lending rates from next month, adding that interest rates are certain to rise further. Read also: Goodbye errors and typos! WhatsApp is bringing the edit option feature soon

“With the 40 bps hike in the repo rate… so as per our policy, from June 1, lending rates will increase by the same amount. So there will definitely be some increase in the lending rate,” he said. Read also: Pay more for PM Jeevan Jyoti Bima, Suraksha Bima from today, June 1: Check new rates

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