Economy

LIC Housing Finance Increases its Prime Lending Rate by 60 bps

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.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@clear.in

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