HDFC Home Loan Rate Up To 11.75%

31 Jul 2008

NEW DELHI: HDFC Ltd has announced a hike of 0.75 per cent in lending rates from August 1 for old and new floating rate customers. The customers will now have to pay a minimum of 11.75 per cent interest on home loans.

This is in line with the rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market,” the lender said in a statement.

The move by HDFC closely follows an up to one per cent rate revision by leading PSU banker Punjab National Bank, Axis Bank and J&K Bank that made all home, corporate, personal and auto loans expensive.

India's largest private sector lender ICICI Bank is also expected to hike interest rates soon.

The increase in home loan rates “will affect existing borrowers whose loans come up for re-pricing on or after August 1.”

The hike in floating home loan rates will impact the existing customers over the next three month period and fixed home loan rates will be unchanged at 14 per cent, HDFC said.

Source: http://timesofindia.indiatimes.com/Business/