India Markets closed

Sundaram BNP Paribas housing loans to cost more

Chennai, Aug 30 (IANS) City-based housing loan company Sundaram BNP Paribas Home Finance Ltd Friday announced a hike of 25 basis points in its prime lending rate (PLR) from next month onwards, owing to tight liquidity conditions and increased borrowing costs.

In a statement issued here the company said the rate of interest on all variable rate loans of all existing customers will go up by 0.25 percent.

"The increase in PLR rate has been driven by the tight liquidity conditions in the market and an increase in borrowing costs of the company," managing director Srinivas Acharyasaid in the statement.

A 50.1-49.9 percent joint venture between Sundaram Finance Limited and BNP Paribas, the housing loan company's loan book size stands over Rs.6,000 crore.