INSUBCONTINENT EXCLUSIVE:
Housing Development Finance Corp (HDFC) raised benchmark lending rates by 10 to 20 basis points, confirming that the upward move in interest
rates was here to stay.
SBI raised its benchmark marginal cost of funds based lending rate (MCLR) by 10 basis points across all tenures,
One basis point is 0.01 percentage point
also increased its benchmark home loan rate by 10 basis point effectively making home loans more expensive for individual borrowers
funds in the last 6 to 9 months
Higher crude prices and softer local liquidity are pushing inflation higher
highest in almost four years, fuelling concerns of higher inflation in India that imports around 80% of its oil requirements
The yield on the 10-year benchmark government security is closing in on 8% for the first time since May 2015, with concerns over higher
rates leading traders to sell their investments
The 10-year bond ended at 7.85% on Friday
The latest increase means that rates on home loans between ?30 lakh and ?75 lakh will now go up to 8.70%, while loans above ?75 lakh will
Loans up to ?30 lakh have been raised to 8.55%
Women borrowers will get loans at 5 basis points lower for all the above slabs.
Besides SBI and ICICI, private sector bank Kotak Mahindra
also raised its benchmark lending rate between 10 and 20 basis points
10 basis points effective June 1.
