LIC Housing Finance joined peers and raised its lending rate by 0.35%. The move, which comes after an increase by bigger rival HDFC by a similar quantum, necessitates that the minimum rate of interest will get revised to 8.65% for the best-rated borrower.
The company stated that it has increased the LIC Housing Prime Lending Rate (LHPLR), to which the interest rate on its loans is linked, by 0.35%.
The company’s managing director and chief executive Y Viswanatha Gowd said that the increase in rates is in tune with the market conditions and 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 repo rate, at which it lends to the system in five consecutive moves by a cumulative 2.25% since May this year. Lenders in the system have responded to the hikes affected by the RBI.
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