According to a BSE notification by HDFC, “HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 35 basis points, with effect from December 20, 2022.”
The monthly EMIs that will be debited from your bank account also increases as the interest rate on your home loan increases. Note that the interest rates are subject to the credit/ risk profile as assessed by HDFC based on certain parameters such as credit scores, segments, repayment of other loans, etc.
If a person meets the parameters, HDFC Limited offers a home loan with a low-interest rate of 8.20% annually. However, this offer is valid until December 31, 2022. According to the HDFC website, “Quoted rate above is available under the Special Housing Loan Scheme for a limited period, only for applicants/ customers (employed and self-employed-professionals/nonprofessionals) with a credit score of 800 and above, availing disbursement (s) (part/full) on or before 31 st December 2022. The indicated rate (s) is subject to the credit/ risk profile as assessed by HDFC based on certain parameters such as credit scores, segments, repayment of other loans, etc.”
RBI rate hike
The Reserve Bank of India (RBI) raised the repo rate by 0.35%, from 5.9% to 6.25%, at its monetary policy meeting on December 7, 2022. The RBI will be compelled to employ the interest rate hike option, in addition to other measures to control inflation, till inflation falls below its comfort level.
Things to check before you apply for a home loan
According to HDFC Ltd, the following points need to be kept in mind before applying for a home loan
- Check your loan eligibility before starting your home loan application.
- Go through the list of documents required and keep them ready before starting your home loan application process.
- Be clear about the type of home loan you need (home loan, home improvement loan, plot loan, etc.)
- Read the FAQs before starting your loan application process.
- Make sure you provide all the details that the home loan provider will need to process your application.