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LIC Housing Finance increases home loan prices

LIC Housing Finance

LIC Housing Finance home loan rates increased

Following the Reserve Bank of India’s (RBI) modification of the repo rate, Life Insurance Corporation, LIC Housing Finance Ltd (LIC HFL) has increased the rate on its loan products. The new interest rates on home loans begin at 6.9%, up from 6.7 percent previously. The new tariffs go into effect on May 13th. 
 
“LIC Housing Finance Ltd (LIC HFL), one of India’s leading housing finance organizations, has increased its lending rates in response to the Reserve Bank of India’s (RBI) statement on May 4, 2022, revising the repo rate. As a result, LICHFL has increased its interest rates across all retail credit product categories,” it stated. 
 
“RBI has hiked the policy rates after a long period, and the effect is being observed across the lenders,” LIC HFL MD and CEO Y Viswanatha Gowd remarked. Despite the rising cost of capital, we have kept our home loan rates competitive to support home purchasers’ dreams. The rate hike has been limited to 20 basis points for borrowers having a CIBIL score of 700 or higher. This increase, in my opinion, will have little impact on the EMI outgo. I am certain that the demand for house loans will remain strong.”

LIC Housing Finance

Due to rising inflation, the RBI decided to raise interest rates by 40 basis points to 4.40 percent in an off-cycle MPC meeting. Increased repo rates indicate higher loan and EMI rates. This was the first rate hike since August 2018 and the first time the MPC raised the repo rate without warning. 
 
“While economic activity is navigating the vortex of forces confronting the world with resilience on the strength of underlying fundamentals and buffers,” Governor Das said during the MPC meeting announcement, “the risks to the near-term inflation outlook are rapidly materializing, as reflected in the inflation print for March and subsequent developments.” 

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