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 loans the rate has become 11 per cent and on loan 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.
Reports said that the hike is in line with interest rates in the economy, which have toughened because of increase in policy rates by 75 basis points since June 2011. The Reserve Bank of India recently hiked the base rates; it has tightened policy rates 11 times since March 2010.
The bank had recently organized a first-of-its-kind one-day Mega Loan Mahotsava in Patas with a focus on loans for construction (home loan), earth-moving equipment and agriculture.