Housing lender HDFC Ltd and public sector Punjab National Bank (PNB) on Tuesday announced a hike in their lending rates by up to 0.25 per cent. The revised rates will be applicable from March 1. With this, loans will become costlier for both new and old customers.
HDFC said in a statement that it is increasing its prime lending rate by up to 0.25 per cent. With this, its prime retail lending rate has increased to 9.20 percent.
PNB also announced to increase the rate based on MCLR by 0.10 percent. This increase will be applicable on all term loans.
PNB said in the information given to the stock market that the loan rate on vehicle, housing and personal loans of one year period has been revised from 8.4 percent to 8.5 percent.
At the beginning of the month, the Reserve Bank had increased the policy interest rate repo by 0.25 percent. With this, the repo rate has increased to 6.25 percent. Financial institutions have also had to increase their lending rates due to costlier finance from the Reserve Bank.
During this period, the country’s largest bank SBI has increased MCLR by 0.10 percent and private sector Kotak Mahindra Bank by 0.05 percent.
