HDFC hikes home loan interest rates by 90 bps in one month: How much your EMI will increase

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HDFC has raised its home loan interest rates for the fourth time in a little more than a month. On June 9, it announced that it has increased its Retail Prime Lending Rate (RPLR) on home loans by 50 basis points (bps). The new rates are effective from June 10, 2022, stated a statement by HDFC. One basis point is one-hundredth of a percentage point. Now HDFC home loan interest rates will start from 7.55%.

According to an HDFC press statement, “HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from June 10, 2022.”

HDFC’s home loan interest rate hikes since May

  • The latest hike will be HDFC’s fourth time in a month.
  • May 2, it increased the rate by 5 basis points.
  • 9 May, it raised the rate by 30 basis points.
  • 1 June, it increased the rate by 5 basis points.

HDFC new rates


Source: HDFC statement from June 9, 2022

The latest increase means that the minimum rate for a borrower with a credit score of more than 800 under the Special Housing Loan Scheme is now at 7.55%.

The minimum interest rate payable by borrowers on loans up to Rs 30 lakh would be 7.70 percent. The minimum interest rate on loans above Rs 30 to Rs 75 lakhs would be 7.95 percent, while loans above Rs 75 lakh will have an 8.05 percent interest rate. Women borrowers will get a 0.05% discount on these loans. The above interest rate is for credit scores of 800 and above. The risk premium depends on your CIBIL Score.

Borrowers will have to pay the higher interest rates on their loans once their reset date arrives.

If you have an HDFC home loan, here’s how much your EMI would increase after the latest interest rate hike.

If your home loan is Rs 30 lakh and the new interest rate charged is 7.70%

Loan Amount (Rs) 30,00,000
Tenure (Years) 20
Interest Rate (%) 7.20%
Old EMI (Rs) 23,620
New Interest rate (%) 7.70%
New EMI (Rs) 24,536
Increase in EMI (Rs) 916

If your home loan is Rs 50 lakh and the new interest rate charged is 7.95%

Loan Amount (Rs) 50,00,000
Tenure (Years) 20
Interest Rate (%) 7.45%
Old EMI (Rs) 40,127
New Interest rate (%) 7.95%
New EMI (Rs) 41,667
Increase in EMI (Rs) 1540

If your home loan is Rs 80 lakh and the new interest rate charged is 8.05%

Loan Amount (Rs) 80,00,000
Tenure (Years) 20
Interest Rate (%) 7.55%
Old EMI (Rs) 64,692
New Interest rate (%) 8.05%
New EMI (Rs) 67,164
Increase in EMI (Rs) 2472

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