LIC Housing Finance Ltd (LIC HFL) has increased the minimum interest rate on home loans by 50 basis points (bps).
Following the hike in its Housing Prime Lending Rate (HPLR) by 50 bps, home loan interest rates will now start from 8 per cent against 7.50 per cent earlier. The new home rates are effective from August 22, 2022.
LIC HFL’s revised HPLR is at 15.80 per cent against 15.30 per cent earlier. Home loan rates are linked to HPLR.
Y Viswanatha Gowd, MD & CEO of LIC HFL, noted that the Reserve Bank of India’s decision to hike the repo rate by 50 basis points on August 05, 2022 was well measured and in line with the global economic trend. Hence, the lending rate hike by LIC HFL is in keeping with the current market scenario.
Though the hike in the lending rate will cause some increase in the EMIs or increase the tenure of home loans, demand for housing will remain robust.
For the salaried and professional category of borrowers with a credit score of 700 and above, the lender is charging 8.05 per cent interest on home loan up to ₹50 lakh, 8.25 per cent on more than ₹50 lakh and up to ₹2 crore, and 8.40 per cent on a loan size of more than ₹2 crore and up to ₹15 crore, per LIC HFL’s website.
For the non-salaried and non-professional category of borrowers with a credit score of 700 and above, the lender is charging 8.15 per cent interest on home loan up to ₹50 lakh, 8.35 per cent on more than ₹50 lakh and up to ₹2 crore, and 8.50 per cent on a loan size of more than ₹2 crore and up to ₹15 crore.
Bajaj Housing Finance
Meanwhile, Bajaj Housing Finance Ltd (BHFL) has increased home loan interest rates by 50 bps. The housing finance company’s home loan interest rates now start from 7.70 per cent against 7.20 per cent earlier.
The aforementioned interest rate is applicable to eligible salaried and professional home loan applicants, per a BHFL statement. Additionally, borrowers also have the option to choose to link their home loan interest rate to the RBI repo rate, for more transparency in the rate-setting mechanism.