MUMBAI: Housing Development Finance Corp ( HDFC ), India’s largest mortgage financier, has increased its benchmark prime lending rate (PLR) for the first time since December 2013, marking a shift in the interest rate trajectory.Mortgage rates for loans above Rs 30 lakhs have been raised by up to 20 basis points while those below Rs 30 lakhs, which include priority sector loans, have been increased by 5 basis points, HDFC said in a statement. One basis point is 0.01 percentage point.The benchmark PLR for HDFC had come down from its peak of 16.75% in December 2013 to 16.15% before this increase. “This hike reflects the increase in our cost of funds since October.Between July 2017 and now, ten year government bond yields have risen 100 basis points. Loans above Rs 75 lakhs will cost 8.70%, up from 8.50%. Loans up to Rs 30 lakhs would now cost 8.45%, up from 8.40%.

Source: Economic Times April 09, 2018 15:45 UTC