LIC Housing Finance Ltd, a leading housing finance company in India, on Monday announced a 50 basis point hike in lending rates after the Reserve Bank of India recently decided to hike interest rates.
LIC Housing Prime Lending Rate (LHPLR) was increased by 50 basis points, or 0.50 percent, effective August 22, 2022, LIC Housing Finance Ltd said in a statement.
LHPLR is the reference rate to which the interest rate on LIC Housing Finance Ltd loans is linked. The new home loan rates now start at 8 percent. Previous home loans started at 7.50 percent.
Commenting on this lending rate revision, Viswanatha Gowd, Managing Director & Chief Executive Officer of LIC Housing Finance Ltd, was as expected: “As expected, the RBI’s decision to increase the repo rate on 5 Economic developments. The increase in the repo rate has resulted in some minimal volatility in PMIs or home loan tenors, but housing demand will remain resilient. Therefore, LIC HFL’s rate hike is in line with the market scenario.”
The Reserve Bank of India’s Monetary Policy Committee, which met Aug. 3-5, unanimously decided to hike interest rates by 50 basis points to 5.4 percent. The key interest rate hikes were announced on August 5th.
Consequently, the standing deposit facility (SDF) rate will be adjusted to 5.15 percent; and the Marginal Standing Facility (MSF) rate and the bank rate at 5.65 percent. The MPC also decided to remain focused on unwinding adjustments to ensure inflation remains on target while supporting growth going forward.
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