For applicants with a credit score of 700 or higher, the new interest rates on home loans start at 7.50%. The revised rates will go into effect June 20, 2022, according to LIC HFL.
On June 10, the Home Development Finance Corporation (
) raised its Retail Prime Lending Rate (RPLR) on home loans by 50 basis points. HFDC home loan rates would effectively start at 7.55%.
The Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 4.90% earlier this month, prompting a majority of lenders to raise their lending rates.
Banks increased their marginal cost of funds-based lending rates (MCLR) after the RBI raised its policy rate.
, , and all increased their MCLR. The MCLR of , , and was also noted.
Borrowers will be required to pay higher interest rates on their loans, leading to higher EMIs, or have their loan term extended if it is possible to do so once the reset date is reached.