Click to play videoNew Delhi: After the Reserve Bank of India (RBI) raised its key lending rate by 50 basis points, India’s top home loan lenders on Thursday upped their interest rates. The RBI warns that increased home loan rates might not be the end of rate hikes.
Kunal Takalkar, who’s recently bought a house, had taken a loan of Rs 14.5 lakh at an interest rate of 9.99 per cent. But even before he paid his third installment, Kunal's interest rate has been hiked by a per cent.
“This is the second time in July that they have hiked the rates. I have already received a letter from my bank. I am afraid I will receive another letter in another 15 days or so. That would amount to at least 2-3 per cent. That's a huge dent on my pocket,” Kunal says.
Interest rates have already been hiked at least thrice this year. Equated Monthly Installments (EMI) go up by Rs 60 for each lakh, with every half percent hike in interest rates.
Are there more hikes by the RBI in the offing?
Chief Economist, HDFC Bank, Abheek Barua says, “I thought it was a question of timing. My sense was that they would have to do 50-100 BPS increase in the repo rate. I think there are couples of more rate hikes to come.”
Even though the RBI has warned that there could indeed be more hikes, if this week's inflation rate is an indication, the worst could be over.
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