A recent press report said that Home loans major HDFC Ltd has hiked its retail prime lending rate by 50 basis points to 16.5 per cent, with effect from August 1, 2011.
Reports said that the revised interest rates on floating rate home loan up to Rs 30 lakh has become 10.75 per cent; for Rs 30-75 lakh loan the rate has become 11 per cent and on loans above Rs 75 lakh the rate is 11.5 per cent.
Reports said that for an Rs 10-lakh home loan that a borrower takes from a primary lending institution for 15 years, then the EMI will that he will have to pay will go up by Rs 300.
Back-of-the envelope calculations show that for a Rs 10-lakh home loan taken from a primary lending institution for 15 years, the EMI will go up by Rs 300.
A HDFC press release said the hike is in line with interest rates in the economy, which have hardened due to increase in policy rates by 75 basis points since June 2011.
Since March 2010, the Reserve Bank of India has tightened policy rates 11 times.