Housing Finance Company HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points on Wednesday, June 1. The revision would come into effect from Wednesday itself. The upward revision in rates will essentially lead to an increase in EMIs for borrowers.
The hike in rates came close on the heels of central bank RBI's recent hike in repo rate by 40 basis points, besides giving indications it would raise rates further in the upcoming monetary policy review meets. On Wednesday, Punjab National Bank (PNB) too raised its marginal cost of funds-based lending rate by 15 basis points with immediate effect.
Recently, banks such as SBI and Bank of Baroda too have hiked their lending rates across various tenures, as per reports.
Punjab National Bank on Wednesday raised its marginal cost of funds-based lending rate by 15 basis points or 0.15% across all tenures, a move that will lead to an increase in EMIs for borrowers. The new rates are effective from June 1, PNB said in a regulatory filing.
The revision follows an off-cycle rate increase by the Reserve Bank in May. The central bank hiked the repo rate -- at which it lends short-term money to banks -- by 0.40% to 4.40%. With the revision, one-year MCLR has increased to 7.40% from 7.25% earlier. Most of the loans are linked to the one-year MCLR rate.
The overnight, one-month and three-month MCLR rose by 15 basis points to 6.75%, 6.80% and 6.90%, respectively, whereas the six-month MCLR increased to 7.10%. At the same time, three-year MCLR increased by 0.15% to 7.70%.
With the increase, EMIs will go up for those borrowers who have availed loans on MCLR (Marginal Cost of Funds based Lending Rate).