The mortgage lender HDFC Ltd has upped its retail prime lending rate (RPLR) on housing loans, which means monthly EMIs are anticipated to rise, according to the company's official statement.
Interest rates are projected to rise in the next months as geopolitical tensions, mostly owing to Russia's invasion of Ukraine, have fuelled global inflationary fears. This caused the Reserve Bank to boost its inflation target earlier this month.
Even while the key repo rate, or short-term lending rates to banks, remained constant, the RBI said it would focus on removing accommodation to keep inflation within the target range.
The Reserve Bank of India (RBI) has been obliged to keep retail inflation at 4%, with a 2% tilt on each side.
For borrowers whose loans are tied to an existing MCLR-linked floating rate loan, this upward revision in loan rate will increase their loan EMIs on the re-set date.
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