LIC Housing Bad News on Home Loans .. What if Rates Go Up ..?

The Reserve Bank of India (RBI) has raised the interest rate repo to curb inflation. As the repo rises, all the banks and housing finance companies are raising interest rates in a row. Recently LIC Housing Finance () also raised interest rates on home loans. Announced a 20 basis point increase in interest rates on selected borrowers. As a result, the interest rate on these loans has risen from 6.7 per cent to 6.9 per cent.

New rates effective from today ..
LIC Housing Finance said the hike in interest rates would take effect from Friday (May 13, 2022). For those with a Sibyl score of 700 or above, the interest rate hike will be just 20 basis points, the company said. If the customer’s Sibyl score is less than 700 .. Interest rates will increase up to 25 basis points. The rate hike for new customers is up to 40 basis points.

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LIC Housing Finance Managing Director and Chief Executive Officer Y Vishwanath Gowd said the impact of the RBI hike in interest rates after a long hiatus had hit all landlords. Despite the rising cost of funds in view of the aspirations of home buyers .. Competitively they said they kept interest rates. HDFC Limited, another largest home loan lender in the country, has also hiked its benchmark loan rate by 0.05 per cent. This increased interest rate came into effect from May 1, 2022. As a result, customers who borrow from this loan company have to pay higher installments every month. However these rates have not changed for new customers. On the other hand, HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vaishya Bank have also adjusted their lending rates in line with the repo rate.

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