MUMBAI: Indiabulls Housing Finance Ltd on Tuesday announced a 0.20 per cent increase in the interest rates on home loans, reflecting hardening of interest rates in the market. Loans up to Rs 35 lakh will be disbursed at 8.80 per cent interest and 8.95 per cent for loans above that. The minimum loan slab has also been raised from Rs 30 lakh to Rs 35 lakh.
“The increase in lending rates reflects the rise in cost of funds,” the company said. However, interest rates on loans for builders have seen a steep hike of 2 per cent — the company’s floating reference rate has shot up from 12.90 per cent to 14.90 per cent, market sources said.