LIC Housing Finance hikes loan rates by 35 basis points

LIC Housing Finance

LIC Housing Finance has raised its house loan rates by 35 basis points (bps) with effect from December 26. The new prices begin at 8.65 per cent, according to a statement issued by the firm on Monday.

The statement by LIC Housing comes after the Reserve Bank of India’s (RBI) six-member monetary policy council raised the benchmark policy rate—the repo rate—by 35 basis points earlier this month.

“The increase in rates is in tune with the market conditions. As far as the real estate sector is concerned, there is good sustenance in the home buying activity,” said Y Viswanatha Gowd, managing director and chief executive officer of LIC Housing Finance.

HDFC Ltd raised its home loan rates by 35 basis points last week. HDFC Ltd’s home loan rates now begin at 8.65 per cent for credit scores of 800 or higher.

The entire rate hike implemented by the RBI’s MPC has been passed on to borrowers by HDFC Ltd. Since May, the committee has raised the policy rate by 225 basis points, as has HDFC Ltd.

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