The Reserve Bank of India had increased the repo rate by 140 bps so far in this financial year taking the lending rates to 5.4 percent. The central bank had announced an increase of 50 bps in August. After the repo rate hike by the RBI, banks and NBFCs also started increasing their lending rates, thus increasing the financial burden on the borrowers.
The latest to join the list is Indiabulls Housing Finance Ltd (IBHFL). The NBFC today (Sept 15) increased its reference rates for all loans by 10 basis points. The lender said that while the new rates will come into effect from September 15 for new borrowers, the rates will be revised for the existing borrowers from the next payment cycle of October.
Indiabulls Housing Finance is among the leading Non-Banking Finance companies (NBFC) and is regulated by the National Housing Bank (NHB).
Earlier, the IBHFL had increased its lending rates by 25 basis points for new customers from August 1 and for existing customers from August 5. The lender had announced a hike in interest rates on home loans by 20 basis points on August 4.
Shares of Indiabulls Housing Finance were trading around 138.90 per share at 2pm on September 15, 2022.
On Wednesday (Sept 14), the State Bank of India (SBI) also increased its benchmark prime lending rate (BPLR) by 70 bps to 13.45 per cent. The new rates came into effect today. However, the SBI kept the marginal cost of the funds-based lending rate (MCLR) unchanged. A reduction in the MCLR rates would have reduced the cost for all borrowers.