With
the Reserve Bank of India’s Monetary Policy Committee (MPC) recently
announcing a 25 basis points hike in the key repo rate to 6.50 per cent,
banks are likely to pass on the burden to customers in the form of more
expensive loans. Actually, Kotak Mahindra Bank and India’s biggest
mortgage lender HDFC have already set the ball rolling.
HDFC yesterday hiked interest rates on home loans by 20 basis points with effect from August 1. Salaried women borrowers can now avail a home loan of up to Rs 30 lakh at 8.7-9.20 per cent per annum while other customers will be charged a rate of 8.75-9.25 per cent. For loans above Rs 30 lakh, salaried women will be charged at 8.80-9.30 per cent while other borrowers will be charged 8.85-9.35 per cent.
The
home loans for self-employed female borrowers start at 8.50 per cent,
while that for male borrowers start at 8.55 per cent for small ticket
loans. The interest on loans (two-year fixed rate variant) of above Rs
75 lakh range from 9.20 to 9.70 for salaried borrowers, and 9-9.50 per
cent for the self-employed.
On Wednesday, Kotak Mahindra Bank also raised its one-month and three-month MCLR, or marginal cost of lending rate, by 5 basis points to 8.20 per cent and 8.55 per cent, respectively. The effective interest rate for salaried individuals is 8.65 per cent, while that for the self-employed is 8.75 per cent.
However, if you are planning to take a home loan, you’d best hurry before SBI and other banks too hike up lending rates. The pundits predict that this is more than likely.
