HDFC Ltd. makes home loans dearer

Housing Development Finance Corporation (HDFC) Ltd. has hiked the home loan rates by 25 basis points or 0.25 percent.

Earlier the bank hiked the rates offered by it on 25^th February by 25 basis points. Since April 2010, the bank has hiked the interest rate by 175 basis points. In accordance to the revised interest rates the bank will now charge 10% interest rate for borrowings between 30 to 75 lakh and 10.25% for loans above 75 lakh.

SBI, the biggest competitor of HDFC also charges same rates, ICICI Bank another leading lender charges slightly higher then both the banks.

Te officials from HDFC Bank said "This is in line with the interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market."

The revised rates will be effective from 1^st March.