Loans are turning out to be dearer with private sector lender, HDFC Bank raising its retail prime lending rate (RPLR). The bank has raised RPLR by 75 basis points, thereby fixing it at 15%.
The bank has made no formal announcement of this hike and has put the new rates in its website.
Floating interest rates have risen by 25 basis points to 9.5% for home loans upto Rs 30 lakhs and to 9.75% for loans amounting between Rs 30-75 lakhs having tenor upto 20 years.
The resultant of this rise would be heightened EMI for loans already granted from the third year of repayment.
The bank has also withdrawn its teaser loan scheme following banking regulator, Reserve Bank of India's stand against them. RBI had increased the provisioning on teaser loans to 2% in the second quarter monetary policy review.
The largest private sector lender of the country, ICICI Bank has also withdrawn its teaser loan scheme from December 1.