HDFC has increased its lending rates in the range of 0.05 per cent to 0.20 per cent, with the lowest hike applicable to the low-ticket size loan. The rates have been increased due to rise in cost of funds. The new rates are effective from April 1. A woman borrower, can now get a loan at Rs 8.40 per cent, and for others it will be offered at 8.45 per cent. For bigger loans, between Rs 30 lakh and Rs 75 lakh, 8.55 per cent is offered for women borrowers and 8.60 per cent for others. For loan above Rs 75 lakh rate will be 8.65 per cent for women and 8.70 per cent for others.

With an increase in prime lending rate, your monthly expenditure towards home loan will also go up. For example: If you have a home loan of Rs50 lakh for a period of 20 years, then your home loan EMI will go up by Rs633 per month at Rs43, 708 from the earlier EMI of Rs 43075.

Currently, all new bank loans are linked with MCLR. The loans given before April 1, 2016, are linked with the base rate. Banks calculate the base rate on the basis of the average cost of funds. MCLR is calculated on the basis of the incremental cost of funds. From April 1 2018 onwards, the bank regulator has linked base rate with MCLR in order to harmonise the movement of two rates.

Recently State Bank of India, increased its base rate to 8.70% per annum.  Allahabad Bank, however, cut down its base rate by 45 basis points to 9.15 percent,  citing cost management initiatives. ICICI Bank has also increased its one-year MCLR to 8.30 percent. All these banks increased their policy rates before the monetary policy announcement . HDFC is the first one to increase its lending rate post monetary policy of RBI.