Big Lenders Hike Interest Rates

Home loan interest rates are heading north as major lenders HDFC and PNB Housing Finance have raised their rates up to 20 and 25 bps, respectively. Faced with tight liquidity, which has led to a rise in interest rates on deposits, cost of funds for the lenders has gone up, and they are hiking interest rates on loans. HDFC, the biggest private lender in home loan space, now charges between 8.4 per cent and 8.7 per cent while PNB Housing’s rates range from 8.4 per cent to 11.75 per cent. Indiabulls Housing Finance has also increased its rates up to 20 bps.