The LIC Housing Finance Ltd. has increased its home loan interest rates after the latest revision of RBI’s repo rate. The new interest rates start from 6.9% (previously 6.7%, 20bps increase). The rates came into effect yesterday, I.e. May 13.
“LIC Housing Finance Ltd (LIC HFL), one of India’s largest Housing Finance companies, has revised the rate of interest for its loan products on the back of the Reserve Bank of India’s (RBI) announcement on 4th May 2022, revising the repo rate. Accordingly, LICHFL has revised its rates of interest upwards across retail loan product categories,” it said.
The interest is different for people with different CIBIL scores. Those who have a CIBIL score of 700 and above will get loans at a 6.9% interest rate, and those who have less than a 700 CIBIL score will get loans at 6.95% (25 bps increase). The NTC (New to credit) customers will get loans at 7.1% (40 bps increase).
”RBI has after a long time increased the policy rates and the effect is being seen across the lenders. We have kept our home loan rates competitive despite the increase in the cost of funds to support the aspirations of home buyers,” LIC HFL’s Managing Director and CEO Y Viswanatha God said.
Many banks like HDFC Bank, Canara Bank, and Bank of Maharashtra have revised their lending rates based on marginal cost of funds and repo rate.
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