Indiabulls Housing Finance raises interest rate on home loans by 25bps, EMIs to rise

Indiabulls Housing Finance has increased its lending rates on housing and MSME loans. The hike was made 25 basis points on these term loans and follows recent revisions from other major real estate lenders and banks. However, the revised tariffs will come into effect from August 1 for new customers, while the tariffs will be applicable from August 5 for existing customers. The announcement comes ahead of RBI’s monetary policy which is due later this week.

In its regulatory filing on Sunday, Indiabulls said, “is revising its benchmark rates on housing loans and MSME loans by 25 basis points in line with recent revisions from other major home lenders and banks.”

He added: “The new rates will be applicable to new customers from August 1 and to existing borrowers from August 5.”

According to the Indiabulls Housing website, currently the interest rate on home loans here starts from 7.6%. The final interest rate will depend on the profile, loan amount, term, type of property and other risk parameters.

With the rise in housing and MSME loans, EMIs will increase once the new rates take effect.

Indiabulls Housing Finance (IBHFL) is the third largest housing finance company in India, regulated by the National Housing Bank (NHB). IBHFL offers fast, convenient and competitively priced home loans in the affordable housing segment.

On Saturday, NBFC giant HDFC raised its retail prime rate (RPLR) on home loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 25 basis points, effective the 1st August 2022.

RBI and other MPC members will meet from August 3 to discuss monetary policy and the outcome will be announced on Friday (August 5). Due to multi-year high inflation, the RBI is expected to further increase the repo rate.

The central bank raised its policy rate by 40% basis points in May, followed by another hike of 50 basis points in June. The political repo rate currently stands at 4.90%. Notably, any change in RBI’s repo rate will impact the bank’s lending and deposit rates.

In the last two policies, when RBI increased the repo rate by 90 basis points, benchmark lending rates and deposit rates were also increased by banks and NBFCs.

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