News Roll
HDFC Hikes Home Loan Rates by up to 20 bps
HDFC , one of India ’ s largest mortgage financiers , recently increased its retail prime lending rate ( PLR ). The raise , effective from April
1 , is the first since December 2013 .
Mortgage rates for loans above `30 lakh have been raised by up to 20 basis points while those below `30 lakh – which includes priority sector loans – have been increased by 5 basis points . One basis point is 0.01 percentage point .
Loans under `30 lakh for women will now be available at 8.40 per cent , while for other borrowers it will be available for 8.45 per cent . Loans between `30 lakh to `75 lakh for women borrowers will be available at 8.55 per cent while others will get it for 8.60 per cent . Loans above `75 lakh will be 8.65 per cent for women and 8.70 per cent for others .
Jaikishan Parmar , Senior Equity Research Analyst at Angel Broking , says , “ HDFC has raised its home loan rate by 20 basis points for loans exceeding `30 lakh . However , rate for home loans under `30 lakh was hiked by just 5 basis points . For loans between `30 lakh and `75 lakh the rate of interest was hiked from 8.40 per cent to 8.60 per cent , while for loans above `75 lakh the rate was hiked from 8.50 per cent to 8.70 per cent . In all these cases , women home loan borrowers will get a rebate of 5 basis points .”
Parmar adds that the rate hike has come at a time when the RBI has not exactly hiked its repo rates . “ This rate hike by HDFC can also be attributed to liquidity tightness in the last few weeks . In practice , mortgage lenders do not increase the EMI of borrowers but extend the tenure accordingly ,” he says .
The regime of raising interest rates on home loans started with private sector lenders such as Axis Bank , Yes Bank and Kotak Mahindra Bank , who set the trend by hiking their marginal cost of funding-based lending rates . It was followed by all the banks in the system , including the largest lender – State Bank of India .
By Suyash Desai
Here is a comparison of home loan interest rates charged by major banks in India :
Bank
Up to `30 lakh
`30-75 lakh
Above `75 lakh
Axis Bank 8.35 8.65 8.7 ICICI Bank 8.5 8.8 8.85
State Bank of India * 8.40-8.50 8.55-8.65 8.65-8.75 HDFC Bank 8.45 8.6 8.7
All figures in percentage . Source : Bank websites * Interest rate will vary as per the risk score of the customer and rates are also based on LTV of the Customer
SBI makes Cash withdrawal free from POS Machines
State Bank of India ( SBI ) debit card holders can now withdraw cash , free of cost , from PoS machines installed by SBI and other banks across various locations . This move comes after the cash crunch recently seen many parts of the country .
As per the current Reserve Bank of India guidelines , customers can withdraw `1000 in Tier I and Tier II cities and `2000 in Tier III to Tier IV cities per day per card . Customer charges , if any , levied on cash withdrawals shall not exceed 1 % of the transaction amount at all centres irrespective of the limit of `1000 / `2000 . SBI is urging customers to use the POS for the withdrawal of cash and has decided not to charge fees for the customers availing this facility for the time being .
Neeraj Vyas , DMD ( chief operating officer ) of SBI in a tweet said : “ For withdrawals up to `2000 , @ TheOfficialSBI has cash @ POS facility @ 4.78 lakh POS machines . Customer can use SBI and any other bank debit card to withdraw cash up to `2000 in Tier 3 to 6 & up to `1000 in Tier 1 & 2 cities per card per day presently without any charges ”. SBI has a total of 6.08 lakh PoS machines of which 4.78 lakh PoS machines are enabled to dispense cash to customers .
Previously , after demonetization , RBI had increased the cash withdrawals at Point of Sales ( POS ) up to `2000 for all Tier I to VI cities and had also for some time waived off the withdrawal charge . India witnessed a cash crunch in the third week of April 2018 . Regions like Andhra Pradesh , Telangana , Karnataka , northern Bihar , parts of Uttar Pradesh , parts of Punjab , the border areas of Gujarat and Madhya Pradesh and some parts of interior Maharashtra were severally affected by this cash crunch .
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Outlook Money May 2018 www . outlookmoney . com