(LIC HFL) has hiked the benchmark Prime Lending Rate (LHPLR) by 60 basis points. The benchmark prime lending rate is used in the pricing of home loans. The revised interest rates on house loans, with effect from June 20, 2022, will now begin at 7.50 percent, stated LIC Housing Finance in a statement.
For applicants with a credit score of 700 or higher, the new interest rates on house loans begin at 7.50 percent. The revised rates will take effect on June 20, 2022, according to LIC HFL.
On June 10, the Home Development Finance Corporation (
) raised its Retail Prime Lending Rate (RPLR) on housing loans by 50 basis points. HFDC’s home loan rates would effectively begin at 7.55 percent.
The Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 4.90 percent earlier this month, prompting a majority of lenders to raise their lending rates.
Banks have raised their marginal cost of funds-based lending rates (MCLR) after the RBI raised its policy rate.
, , and all increased their MCLR. The MCLR of , , and has also been raised.
Borrowers will be required to pay higher interest rates on their loans, resulting in higher EMIs, or will have their loan tenure extended if there is a possibility of doing so once the reset date occurs.