LIC Housing Finance Ltd (LICHFL) has revised upwards the minimum interest rate at which it will offer new home loans to 8.65 per cent against 8.30 per cent earlier. The new rates are effective from December 26, 2022.
This follows a 35 basis points (bps) increase in the housing finance company’s prime lending rate (PLR) for housing loans from 16.45 per cent to 16.80 per cent.
PLR serves as a benchmark for asset pricing for HFCs and housing loans are offered at a discount to this benchmark.
Y Viswanatha Gowd, MD & CEO, LICHFL, said, “The increase in rates is in tune with the market conditions.As far as the real estate sector is concerned, there is good sustenance in the home buying activity.”