LIC Housing Finance home loan interest rate hiked again - check new rates

LIC Housing Finance home loan interest rate: LIC Housing Finance has increased its prime lending rate on home loans by 50 basis points. With this, the new interest rates on home loans will now start from 8 per cent. Earlier, it was 7.50 per cent.

According to the LIC Housing website, home loan interest rate for up to Rs 15 crore for salaried and professionals, having Cibil score above 800, will be 8 per cent.

For those having Cibil score between 750 and 799, home loan interest rate will be 8.05 per cent for up to Rs 5 crore. For those borrowing home loan more than Rs 5 crore and less than Rs 15 crore, LIC Housing Finance will charge then 8.40 interest. 

For Cibil Score between 700 -749, home loan interest rate offered by LIC Housing Finance is 8.20 per cent up to Rs 50 lakhs, 8.40 per cent for loan more than Rs 50 lakhs and up to Rs 2 crore. The company will offer home loan for more than Rs 2 crores and up to Rs 15 crores at 8.55 per cent.

This is the second hike in the interest rate by LIC Housing Finance in two months. LIC Housing Finance had on August 22 increased the prime lending rate by 50 basis points.

The latest decision to hike interest rate comes just ahead of the RBI's monetary policy decision. The central bank is expected to hike the benchmark lending rate once again to bolster the fight against inflation. Notably, the inflation rate is currently hovering above the upper tolerance band of the central bank for consecutive months.

"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," Y Viswanatha Gowd, MD & CEO, LIC Housing Finance, said.

The RBI has increased the repo rate by 140 basis points in the last three policy-related meets –- 40 bps in May, 50 bps in June and August each. The latest hike in repo rate was announced on August 5.