Mumbai: LIC Housing Finance Ltd (LIC HFL) on Monday increased the LIC Housing Prime Lending Rate (LHPLR) by 50 basis points.
LHPLR is the benchmark rate to which the interest rate on LIC HFL’s loans is linked. The new interest rates on home loans will now start from 8 percent.
Previous home loans started from 7.50 percent. The new rates will be effective from Monday, a statement from the company said.
LIC Housing Finance Ltd Managing Director and CEO Y Viswanatha Gowd said: “As expected, the RBI’s decision to hike the repo rate by 50 basis points on August 5 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,” he said.