LIC Housing Finance has released the latest interest rates on home loans, which has been increased by 50 basis points. The floating rate home loans are linked to the LIC housing prime lending rate, which currently stands at 15.80 per cent.
LIC Housing Finance Limited (HFL) on August 22, 2022, revised the prime lending rate (PLR) on home loans by 50 basis points. Consequently, the new rate of interest applicable on home loans will start at 8 per cent, as opposed to 7.50 per cent previously. The revised rates will come into effect from today.
PLR, also known as prime rate, is defined as the rate of interest at which non-banking financial corporations lend to customers with a good credit score. For LIC HFL, the LIC Housing Prime Lending Rate (LHPLR) is the benchmark rate to which the rate of interest on home loans is linked.
Viswanatha Gowd, managing director and CEO, LIC HFL, said: “As expected, the Reserve Bank of India’s (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 equated monthly instalments (EMIs) or the tenure on the home loans, but the demand for housing will remain robust. Hence, the interest rate hike of LIC HFL is in line with the market scenario.”
Based on the revised PLR, following are the interest rates applicable on home loans, starting today:
In case of salaried and professional occupations:
With CIBIL Score > 700
Up to Rs. 50 lakh - 8.05 per cent
More than Rs. 50 lakh and up to Rs. 2 crore - 8.25 per cent
Between Rs. 2 crore and Rs. 15 crore - 8.40 per cent
With CIBIL Score of 600-699
Up to Rs. 50 lakh - 8.30 per cent
More than Rs. 50 lakh and up to Rs. 2 crore - 8.50 per cent
Between Rs. 2 crore and Rs. 15 crore - 8.65 per cent
With CIBIL Score less than 600
Up to Rs. 50 lakh - 8.75 per cent
More than Rs. 50 lakh and up to Rs. 2 crore - 8.95 per cent
Between Rs. 2 crore and Rs. 15 crore - 9.15 per cent
In case of non-salaried and other professional occupations:
Up to Rs. 50 lakh - 8.15 per cent
More than Rs. 50 lakh and up to Rs. 2 crore - 8.35 per cent
Between Rs. 2 crore and Rs. 15 crore - 8.50 per cent
Up to Rs. 50 lakh - 8.40 per cent
More than Rs. 50 lakh and up to Rs. 2 crore - 8.60 per cent
Between Rs. 2 crore and Rs. 15 crore - 8.75 per cent
Up to Rs. 50 lakh - 8.85 per cent
More than Rs. 50 lakh and up to Rs. 2 crore - 9.05 per cent
Between Rs. 2 crore and Rs. 15 crore - 9.25 per cent
According to the latest update on LIC HFL’s official website, the revised interest rates are floating, and linked to LHPLR, which currently stands at 15.80 per cent.
The Reserve Bank of India (RBI) has increased the repo rate by 140 basis points in the last thee policy-related meets – by 40 bps in May 2022, 50 bps in June 2022, and then 50 bps in August 2022. The latest hike in repo rate was announced on August 5, 2022.