LIC Housing Finance Ltd, one of the leading housing finance companies in India announced a hike in lending rates. On Monday. It increased its Prime Lending Rate (PLR), the rate at which it charges to its creditworthy borrowers, by 50 basis points. The new interest rates on home loans will now start from 8, earlier it was 7.50 percent. The new rates will be effective from Monday.
The decision was taken in cognizance of an increase in repo rate by the Reserve Bank of India (RBI). RBI in its recent monetary policy hiked the repo rate by 50 basis points to tackle inflation that is continuously above the upper tolerance band for months. Y. Viswanatha Gowd, MD & CEO of LIC housing finance ltd referred to the hike in line with RBI’s decision to hike the repo rate and current global economic trends.
“As expected, the RBI’s decision to hike the repo rate by 50 basis points on 5th August was well measured and abreast with the global economic trend. The hike in repo rate has caused some minimum fluctuation in the EMIs or the tenure on the home loans but demand for housing will remain robust. Hence, the interest rate hike of LIC HFL is in line with the market scenario,” said Y. Viswanatha Gowd, MD & CEO. The hike in repo rate by 50 basis points took it to pre COVID pandemic level resulting in an increase in EMI of Home, auto, and other loans.
