LIC Housing Finance increased its prime lending rate (LHPLR) by 60 basis points (bps). As per the official website, LHPLR is set at 15.30%. With this hike, effective 20 June, the new home loan interest rates will now start from 7.50%. The hike in the interest rate is in sync with the market scenario. With this hike, the home loan EMIs have become costlier too.
The interest rate will be 7.50% on home loans equal to or more than Rs 10 lakh for salaried and professionals. The borrowers can avail of a home loan at this interest rate only when their CIBIL score is equal to or greater than 700.
Salaried and professionals with a CIBIL score equal to or greater than 700 will pay a 7.55% interest rate on home loans worth up to Rs 50 lakh. 7.755% interest rate will be applied when the loan amount is more than Rs 50 lakh and goes up to Rs 2 crore. A 7.90% interest rate will apply on housing loans more than Rs 2 crore and up to Rs 15 crore.
If the CIBIL score is between 600 and 699, a 7.80% interest rate will apply to a loan amount of up to Rs 50 lakh. 8% interest rate on loans worth more than Rs 50 lakh and up to Rs 2 crore. 8.15% interest rate on loans between Rs 2 crore and Rs 15 crore.
If the CIBIL score is less than 600, a 8.25% interest rate will apply on home loans worth up to Rs 50 lakh. 8.45% interest rate will apply on loans over Rs 50 lakh and up to Rs 2 crore. An interest rate of 8.65% will apply on loans more than Rs 2 crore and up to Rs 15 crore.
Previously this month, the Reserve Bank of India (RBI) increased the repo rate to 4.90% by 50 basis points. Following this hike, most lenders, including Indian Overseas Bank NSE -0.61 % (IOB NSE -0.61 %) and State Bank of India NSE 0.97 % (SBI NSE 0.97 %), increased their interest rates. HDFC NSE 0.92 % Ltd increased its Retail Prime Lending Rate (RPLR) concerning housing loans by 50 bps effective from 10 June 2022.
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