LIC Housing Finance home loan interest rate: LIC Housing Finance increased its prime rate on home loans by 50 basis points. With this, new interest rates on home loans will now start from 8%. Previously, it was 7.50%.
According to the LIC Housing website, the interest rate on home loans up to Rs 15 crore for salaried and professional workers, having a Cibil score above 800, will be 8%.
For those with a Cibil score between 750 and 799, the interest rate on the home loan will be 8.05% up to Rs 5 crore. For those who borrow a home loan above Rs 5 crore and below Rs 15 crore, LIC Housing Finance will then charge 8.40 interest.
For Cibil Score between 700 and 749, the interest rate on home loans offered by LIC Housing Finance is 8.20% up to Rs 50 lakhs, 8.40% for loans above Rs 50 lakhs and up to at Rs 2 crore. The company will offer a home loan for more than Rs 2 crores and up to Rs 15 crores at 8.55%.
This is the second interest rate hike by LIC Housing Finance in two months. LIC Housing Finance had on August 22 increased the prime rate by 50 basis points.
The latest move to raise interest rates comes just ahead of the RBI’s monetary policy decision. The central bank should raise the benchmark policy rate again to strengthen the fight against inflation. Notably, the inflation rate is currently hovering above the central bank’s upper tolerance band for consecutive months.
“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. The repo rate hike caused minimal fluctuation in EMIs or term of home loans, but demand for housing will remain robust, therefore LIC HFL’s interest rate hike is in line with the market scenario,” said Y Viswanatha Gowd, MD and CEO, LIC Housing Finance.
The RBI has raised the repo rate by 140 basis points in the last three policy-related meetings — 40 basis points in May, 50 basis points in June and August each. The last repo rate hike was announced on August 5th.