LIC Housing Finance raises lending rates by 60 basis points
Jun 20, 2022
Mumbai (Maharashtra) [India], June 20 : LIC Housing Finance Ltd, a leading housing finance company in India, on Monday announced an increase in lending rate by 60 basis points or 0.60 per cent which will lead to a jump in EMIs of the company's customers.
LIC Housing Finance has increased the LIC Housing Prime Lending Rate (LHPLR) by 60 basis points. LHPLR is the benchmark rate to which the interest rate on LIC HFL's loans are linked.
The new interest rates on home loans now start from 7.50 per cent. The new rates will be effective from June 20, 2022, LIC Housing Finance said in a statement.
Commenting on the lending rate revision, Managing Director and Chief Executive Officer of LIC Housing Finance Y Viswanatha Gowd said, "The interest rate hike is in line with the market scenario. If compared historically the rates are still at a very competitive level. Therefore, we will see a sustenance in demand for home loans."
Leading financial institutions have increased lending rates following the increase in policy repo rate by the Reserve Bank of India (RBI).
The RBI has hiked the policy repo rate twice in the past two months.
In May, in its off-cycle monetary policy review, the central bank hiked the policy repo rate by 40 basis points or 0.40 per cent to 4.4 per cent.
On June 8, the RBI again hiked the repo rate by 50 basis points taking the rate to 4.90 per cent.
