Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)  

HDFC Raises Lending Rate By 20 Basis Points

Housing Development and Finance Corporation Ltd. said it will increase its lending rates by 20 basis points, a day after the Reserve Bank of India hiked the policy rate.

HDFC has increased its retail prime lending rate, on which its adjustable rate home loans are benchmarked, by 20 basis points, with effect from Aug. 1, 2018,” the country’s largest mortgage lender said in a regulatory filing yesterday. Loans up to Rs 30 lakh will be available at 8.70 percent and above Rs 30 lakh at 8.8 percent for women borrowers.

The rate will be 5 basis points more for other customers. The RBI increased the short-term lending rate by 25 basis points to 6.50 percent on inflationary concerns, in its third bi-monthly monetary policy statement for 2018-19 .