LIC Housing finance hikes lending rate by 60 bps, home loans start at 7.5%

Says hike is in line with market scenario; rates are still very competitive and demand for home loans is to likely to sustain

Factoring in the hardening of rates in the system, LIC Housing Finance Ltd (LIC HFL) today increased its benchmark Prime Lending Rate (LHPLR) by 60 basis points. The pricing of home loans is linked to the benchmark rate.

The new interest rates on home loans now start from 7.50 per cent for borrowers having a credit score of 700 and above. The new rates will be effective from June 20, 2022, LIC HFL said in a statement.

This follows Housing Development Finance Corporation’s (HDFC) 50 basis points hike in its Retail Prime Lending Rate (RPLR) on housing loans on June 10. Effectively,