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LIC Housing Finance raises mortgage rates by 0.5%

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New interest rates on home loans will now start from 8%.

Bombay (Maharashtra):

LIC Housing Finance Ltd, one of India’s leading housing finance companies, on Monday announced a 50 basis point increase in lending rates following the Reserve Bank of India’s recent decision to hike the lending rate. political repos.

LIC Housing Prime Lending Rate (LHPLR) has been increased by 50 basis points or 0.50% effective August 22, 2022, LIC Housing Finance Ltd said in a statement.

The LHPLR is the reference rate to which the interest rate on loans from LIC Housing Finance Ltd is linked. New interest rates on home loans will now start from 8%. Previous home loans started from 7.50%.

Commenting on this lending rate review, Managing Director and Chief Executive Officer of LIC Housing Finance Ltd Y Viswanatha Gowd said: “As expected, the RBI’s decision to raise the repo rate by 50 basis points on August 5 was well measured and in tune with the global market. economic trend. The rise in the repo rate has caused minimal fluctuation in EMIs or mortgage tenors, but housing demand will remain robust. Therefore, the rise in LIC HFL interest rates is in line with the market scenario.

The Reserve Bank of India’s monetary policy committee, which met from August 3-5, unanimously decided to raise the repo rate by 50 basis points to 5.4 %. The announcement of key rate increases was made on August 5th.

Consequently, the rate of the permanent deposit facility (SDF) is adjusted to 5.15%; and the Marginal Standing Facility (MSF) rate and discount rate at 5.65%. The MPC also decided to remain focused on pulling out accommodation to ensure inflation remains on target going forward, while supporting growth.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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