Loan interest

HDFC raises home loan interest rates by 90 basis points in a month: how much your EMI will increase

HDFC raised interest rates on home loans for the fourth time in just over a month. On June 9, it announced that it had increased its Retail Prime Lending Rate (RPLR) on home loans by 50 basis points (bps). The new rates come into effect from June 10, 2022, says a statement from HDFC. A basis point is one hundredth of a percentage point. Now, HDFC home loan interest rates will start at 7.55%.

According to a press release from HDFC, “HDFC is increasing its Retail Prime Rate (RPLR) on home loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, effective June 10, 2022”.

HDFC home loan interest rates have been rising since May

  • The latest rise will be HDFC’s fourth time in a month.
  • On May 2, it raised the rate by 5 basis points.
  • On May 9, it raised the rate by 30 basis points.
  • On June 1, it raised the rate by 5 basis points.

New HDFC tariffs

Source: HDFC statement of June 9, 2022

The latest increase means that the minimum rate for a borrower with a credit score above 800 under the special home loan scheme is now 7.55%.

The minimum interest rate payable by borrowers on loans up to Rs 30 lakh would be 7.70%. The minimum interest rate on loans above Rs 30 to Rs 75 lakhs would be 7.95%, while loans above Rs 75 lakh will have an interest rate of 8.05%. Female borrowers will receive a 0.05% discount on these loans. The interest rate above is for credit scores of 800 and above. The risk premium depends on your CIBIL Score.

Borrowers will have to pay the higher interest rates on their loans once their reset date arrives.

If you have an HDFC home loan, here’s how much your EMI would increase after the last interest rate hike.

If your home loan is Rs 30 lakh and the new interest rate applied is 7.70%

Loan amount (Rs) 30,00,000
Term (years) 20
Interest rate (%) 7.20%
Former EMI (Rs) 23,620
New interest rate (%) 7.70%
New EMI (Rs) 24,536
Increase in EMI (Rs) 916

If your home loan is Rs 50 lakh and the new interest rate applied is 7.95%

Loan amount (Rs) 50,00,000
Term (years) 20
Interest rate (%) 7.45%
Former EMI (Rs) 40 127
New interest rate (%) 7.95%
New EMI (Rs) 41,667
Increase in EMI (Rs) 1540

If your home loan is Rs 80 lakh and the new interest rate applied is 8.05%

Loan amount (Rs) 80,00,000
Term (years) 20
Interest rate (%) 7.55%
Former EMI (Rs) 64,692
New interest rate (%) 8.05%
New EMI (Rs) 67 164
Increase in EMI (Rs) 2472