LIC Housing Finance, Bajaj Housing Finance hike lending rates by 0.5%

Mortgage lenders Bajaj Housing Finance and LIC Housing Finance on Monday announced a 0.50 per cent hike each in their lending rates.

The revisions come amid a rising interest rates scenario, which has seen the RBI hiking its key lending rate by 1.40 per cent since May to tame inflation.

Bajaj Housing Finance hiked its rate by 0.50 per cent, and the lowest priced product for the salaried and professional applicants will be 7.70 per cent now, as per an official statement.

Despite the latest hike, the company claimed to be offering loans at competitive rates compared to most of its peers.

LIC Housing Finance has increased its prime lending rate (LHPLR) by 0.50 per cent and the new interest rates on home loans will now start from 8 per cent as against 7.50 per cent previously.

The company's chief executive and managing director Y Viswanatha Gowd said the RBI's decision to hike the repo rate by 0.50 per cent has caused "minimum fluctuation" in monthly instalments or tenure of home loans and exuded confidence that demand for housing will remain robust.