The new interest rates on home loans will now begin at 7.50 percent, according to a statement from LIC Housing Finance.
Following the RBI’s decision to raise the repo rate, LIC Housing Finance has upped its benchmark prime lending rate (LHPLR), which is utilized in the pricing of house loans, by 60 basis points. This will increase the cost of loans across all tenures and will take effect on June 20.
The new interest rates on home loans will now begin at 7.50 percent, according to a statement from LIC Housing Finance. According to the company’s website, the prime loan rate at LIC Housing is presently fixed at 15.30%.
If a borrower has a CIBIL score of 700 or more, the interest rate on house loans exceeding Rs 10 lakh would be 7.50 percent for salaried and professional borrowers. Borrowers with CIBIL scores of 700 or more would have to pay an interest rate of 7.55 percent on house loans up to Rs 50 lakh, 7.75 percent on loans between Rs 50 lakh and Rs 2 crore, and 7.90 percent on loans between Rs 2 crore and Rs 15 crore.
The interest rate on house loans up to Rs 50 lakh will be 7.80% on CIBIL scores between 600 and 699, 8% on more than Rs 50 lakh up to Rs 2 crore, and 8.15 percent on more than Rs 2 crore and up to Rs 15 crore. Those with a CIBIL score of less than 600 will be offered an interest rate of 8.25 percent on house loans up to Rs 50 lakh, 8.45 percent on loans greater than Rs 50 lakh but less than Rs 2 crore, and 8.65 percent on loans greater than Rs 2 crore but less than Rs 15 crore. In the event of credit scores between 101 and 200, or NTC, the interest rate on house loans up to Rs 50 lakh for salaried and professionals would be 8.20 percent, and 8.40 percent on loans exceeding Rs 50 lakh up to Rs 1 crore.
As the Reserve Bank of India tightens monetary policy and raises key repo rates to contain inflation, commercial lenders are following suit and hiking interest rates. Several banks, including ICICI Bank, HDFC Bank, and Punjab National Bank, have raised their interest rates in recent days. The Monetary Policy Committee of the Reserve Bank of India unanimously resolved last week to raise the repo rate by 50 basis points to 4.90 percent, with an emphasis on removal of support. It has pushed lenders to raise lending interest rates.
According to the most recent figures, retail inflation, as measured by the Consumer Price Index (CPI), fell marginally to 7.04 percent in May. In April, India’s headline inflation rate reached a near-eight-year high of 7.79%. Experts believe that a strong drop in fuel prices following the cut in excise tax helped to drive down food prices last month. Retail inflation in May stayed over the Reserve Bank of India’s (RBI) upper tolerance level for the fifth month in a row.