LIC Housing Finance raises its prime rate by 50 basis points
LIC Housing Finance Ltd (LIC HFL) increased the minimum interest rate on home loans by 50 basis points (bps).
Following the 50 basis point hike in its prime housing rate (HPLR), interest rates on home loans will now start at 8% from 7.50% previously. The rates for new homes are in effect from August 22, 2022.
LIC HFL’s revised HPLR is 15.80% versus 15.30% previously. Home loan rates are linked to HPLR.
Y Viswanatha Gowd, MD and CEO of LIC HFL, noted that the Reserve Bank of India’s decision to raise the repo rate by 50 basis points on August 05, 2022 was well measured and in line with the global economic trend. Therefore, the increase in lending rates by LIC HFL is in line with the current market scenario.
Although the increase in the lending rate will lead to some increase in EMIs or increase the duration of home loans, housing demand will remain robust.
For the category of salaried and professional borrowers with a credit score of 700 and above, the lender charges 8.05% interest on the home loan up to ₹50 lakh, 8.25% on more than ₹50 lakh and up to ₹2 crore, and 8.40% on loan over ₹2 crore and up to ₹15 crore, per LIC HFL website.
For the category of non-salaried and non-professional borrowers with a credit score of 700 and above, the lender charges 8.15% interest on home loan up to ₹50 lakh, 8.35% on more than ₹50 lakh ₹ and up to ₹2 crore and 8.50% on loan over ₹2 crore and up to ₹15 crore.
August 22, 2022