LIC Housing Finance hikes lending rate by 60 basis points

Mumbai, June 20

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Mortgage player LIC Housing Finance (LIC HFL) on Monday said it has raised its prime lending rate (LHPLR) by 60 basis points.

With this increase, the new interest rates, effective from June 20, on home loans will now start from 7.50 per cent, the company said in a release.

“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 sustenance in demand for home loans,” its Managing Director and Chief Executive Officer Y Viswanatha Gowd said.

The prime lending rate is the benchmark rate to which the housing finance company’s interest rates on loans are linked.

Following a 50 basis points increase in repo rate to 4.90 per cent by the Reserve Bank of India (RBI) earlier this month, a majority of lenders, including State Bank of India (SBI) and Indian Overseas Bank (IOB), have raised their interest rates.

HDFC Ltd also hiked its Retail Prime Lending Rate (RPLR) for housing loans by 50 basis points, with effect from June 10, 2022.