LIC Housing Finance also increased interest rates, check how expensive the home loan rate became?

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LIC Housing Finance News Update: Home loan finance company LIC Housing Finance Limited (LIC HFL) has increased its prime home loan interest rate (LHPLR) by 0.60 percent to 7.50 percent. LIC HFL said on Monday that with this increase, the interest rate on home loans will now start from 7.50 percent. The new interest rates are effective from June 20, 2022.

LHPLR is actually the standard interest rate to which the interest rate of LIC HFL loans is linked. Y Vishwanath Gaur, MD, LIC HFL said, “The hike in interest rates is in line with the current situation in the market. If compared historically, the rates are still very competitive. Hence, the demand for home loans is expected to remain stable.

Also read- Home Loan: Loan became expensive due to increase in repo rate, but there are still many ways to get cheap loan

Interest rate was also increased in May

Last month i.e. in May also, LIC Housing Finance had increased the interest rates. The company made this increase in home loan interest rates on the basis of CIBIL score after the Reserve Bank increased the repo rate by 40 basis points. According to the report, the initial home loan rates for customers with good credit scores i.e. above 700 were increased by 20 basis points.

After this the new rate was increased to 6.9 percent. For customers with less than this CIBIL score, an increase of 25 basis points was made. Apart from this, home loan rates for new to credit customers were increased by 40 basis points. These rates were effective from May 13.

Also read- Which of the 6 big private banks including ICICI and HDFC is paying the highest interest on RD, see details

Reserve Bank had increased the repo rate

Actually, after increasing the repo rate by the Reserve Bank, all the banks and finance companies are increasing the interest rates. In this episode, LIC Housing has also increased the interest rates. The Reserve Bank has first hiked the rate by 40 basis points in May and then by 50 basis points in early June. After this everyone is increasing their rates. Experts believe that the Reserve Bank will increase interest rates even further. Therefore, again banks and finance companies will increase interest rates. This means that further interest rates will increase rapidly.

Tags: home loan EMI, housing loan, Interest Rates

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