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Mortgage lender LIC Housing Finance joined peers and hiked its lending rate by 0.35 per cent. The move, which comes a week after an increase by bigger rival HDFC by a similar quantum, entails that the minimum rate of interest will get revised to 8.65 per cent for the best-rated borrower. In a statement, the company said it has increased the LIC Housing Prime Lending Rate (LHPLR), to which the interest rate on its loans is linked, by 0.35 per cent. "The increase in rates is in tune with the market conditions," the company's managing director and chief executive Y Viswanatha Gowd said. He added that there is good sustenance in the home-buying activity in the real estate sector at present. It can be noted that the Reserve Bank has hiked the repo rate, at which it lends to the system in five consecutive moves by a cumulative 2.25 per cent since May this year. Lenders in the system have responded to the hikes affected by the RBI.
The Reserve Bank on Monday said it has imposed penalties on various financial entities, including Rs 1.76 crore on Vakrangee, for violating various norms. The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1,76,00,000 on Vakrangee Ltd for non-compliance with certain provisions of the White Label ATM (WLA) directions, the central bank said in a release. Among others, the regulator has imposed a Rs 30 lakh penalty on The Jammu and Kashmir State Co-operative Bank Ltd; a fine of Rs 6 lakh on Mumbai-based The Pratap Co-operative Ltd and Rs 5 lakh each on LIC Housing Finance and The Mysore Merchants Co-operative Bank Ltd. The Nagar Sahakari Bank Ltd, Maharajganj, Uttar Pradesh has been levied a fine of Rs 4 lakh; while Karnataka-based The City Co-operative Bank Ltd and Uttar Pradesh-based Banda Urban Co-operative Bank Ltd were penalised with fines of Rs 2 lakh each. The RBI said these actions are based on the deficiencies in regulatory compliance and are not intended to
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 loan