HDFC Bank has increased its home loan interest rates marginally to factor in the changes after its merger with India’s largest mortgage lender HDFC Ltd. Earlier in July 2023, HDFC Bank completed its merger with HDFC making it the largest entity in the financial space in the country.
According to the latest update on HDFC Bank’s website, the lender has hiked its repo-linked home loan interest rates to a higher range of 9.05% to 9.8%, which is up by 10-15 basis points from the previous rates. The bank has stated that this minor change is due to the merger between HDFC Bank and HDFC Ltd which was effective from July 1, 2023.
As part of the changes, HDFC Bank has also shifted the benchmark for its home loans from the repo rate linked lending rate (RLLR) to the external benchmark lending rate (EBLR). As per RBI guidelines, all floating rate loans must be linked to an external benchmark. For HDFC Bank this external benchmark is now the one-year MCLR. Any further changes to interest rates in the future would be based on the external benchmark rate.
HDFC Bank continues to offer competitive interest rates for salaried and professional applicants. Other terms and conditions of HDFC Bank’s home loans remain unchanged with attractive options for balance transfer and top-up loans. Customers can easily check their new interest rates applicable based on the EBLR on the bank’s website.
Among other major lenders, ICICI Bank offers home loan interest rates in the range of 9% to 10.05%, Axis Bank offers rates from 8.75% to 9.65% and State Bank of India has home loans starting from 9.15% to 10.05%. Kotak Mahindra Bank provides loans at 8.70% interest rate. Despite the minor increase, HDFC Bank’s revised rates are still within the range offered by other banks.
