India’s leading housing finance mortgage company, LIC Housing Finance Ltd (LIC HFL), following the Reserve Bank of India’s (RBI) recent decision to increase the repo rate in its policy August 2022, announced an increase of 50 basis points or 0.50%. borrowing rates, starting Monday, August 22.
Y Viswanatha Gowd, Managing Director and Chief Executive Officer of LIC Housing Finance Ltd, commenting on the rate review said: “As expected, the RBI’s decision to raise the repo rate by 50 basis points on August 5 was well measured and in line with the global economic trend.
With this, the equated monthly payments (EMI) on LIC HFL prime rate linked home loans are also expected to increase. However, the housing finance company expects housing demand to remain robust despite rising rates.
“The rise in the repo rate has caused minimal fluctuation in EMIs or mortgage tenors, but demand for housing will remain robust. Therefore, the rise in LIC HFL interest rates is in line with the scenario of market,” Gowd added.
The LIC HFL prime rate is the reference rate to which the interest rate to which the housing finance company loans are linked is linked. After the hike, discounted interest rates on home loans would start at 8%, compared to 7.50% on previous home loans.
According to the update on the official LIC HFL website, the interest rate (floating – linked to LHPLR) on the current LHPLR is 15.80% and the interest rate on the LHPLRNH is 15.90 %.
Additionally, LIC HFL, for employees and professionals with a CIBIL score greater than or equal to 700, now imposes an interest rate of 8.05% on home loans up to Rs 50 lakh, and 8.25 % on more than Rs 50 lakhs to Rs 2 crores.
For people with a credit score between 600 and 699, the interest rate is 8.30% on home loans up to Rs 50 lakh and 8.50% on more than Rs 50 lakh to Rs 2 crore. For people with a CIBIL score below 600, LIC HFL charges 8.75% for home loans up to Rs 50 lakh home loan and 8.95% for more than Rs 50 lakh to Rs 2 crore.
On the other hand, for people with a CIBIL score of 101-200 or NTC, the rate is 8.70% for a loan up to Rs 50 lakh and 8.90% for more than Rs 50 lakh to Rs 1 crore .
LIC Housing, for people with a CIBIL score of 700 or above, offers an interest rate of 8% on home loans of Rs 10 lakh or more.
RBI, in the last three policy meetings, increased the repo rate by 140 basis points – 40 basis points in May, 50 basis points in June and 50 basis points in August. The last announcement concerning the increase in key rates was made on August 5.