HDFC Bank increases Home Loan Rates by 50 basis points (0.5%)

The HDFC bank yesterday announced a rate hike for its home loan borrowers by 50 basis points or 0.5%. This news came in just before ICICI bank hiked its deposit and home loan rates by 75 basis points.

However, the HDFC bank has been a bit of kind to its existing home loan borrowers. The existing house loan borrowers will have to pay a hike of 50 basis points or 0.5% as against 75 basis points for the new borrowers of HDFC bank home loan. That means, if anyone is taking a home loan or a house loan after July 1, 2008, then his new interest will be dearer by 75 basis points. While for the existing HDFC home loan borrowers, the hike will be only 50 basis points.

The HDFC bank has justified the hike citing reasons of inflation, RBI CRR hike, and claimed that they have increased the deposit rated to the same extent. But ultimately, it will be the customers or home loan borrowers who will be required to pay higher interest rates.

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