LIC Housing Finance Ltd (LIC HFL), a Housing Finance company in India, has increased the LIC Housing Prime Lending Rate (LHPLR) by 60 basis points, an official statement said.
LHPLR is the benchmark rate to which the interest rate on LIC HFL’s loans are linked.
The new interest rates on home loan now start from 7.50%.
The new rates will be effective from 20th June 2022.
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Commenting on this lending rate revision, MD & CEO Y. Viswanatha Gowd said, “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 a sustenance in demand for home loans.”
Reserve Bank of India (RBI) recently raised the interest rate by 50 basis points to a two-year high of 4.9 per cent as it doubled down to tame inflation that has surged in the last couple of months.
The rate hike came on the back of a 40 bps increase effected by RBI at an unscheduled meeting on May 4.
All the six members of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted for the latest rate hike.
Consumer Price Index (CPI) based inflation, which RBI factors in while arriving at its monetary policy, galloped for the seventh straight month to touch an 8-year high of 7.79 per cent in April.