HDFC raises benchmark lending rate by 0.25 per cent on housing loans

Mumbai: Housing Development Finance Corp Ltd (HDFC), India's biggest mortgage lender, said on Thursday it will increase its retail prime lending rate by 0.25 per cent, effective Friday.

Earlier on Thursday, ICICI Bank, the country's second-largest lender, became the latest bank to raise interest rates, lifting its base rate by 25 basis points to 10 per cent.

The rise in interest rates comes after the RBI introduced monetary tightening measures this quarter to bolster the rupee, which fell to a record low against the dollar on Thursday.

HDFC said it had reduced its retail prime lending rate by 10 basis points in February this year and, therefore on a net basis the rate will be higher by 15 bps since January.