LIC Housing Finance raises lending rates by 35 bps, cites market conditions

'Good sustenance in home buying', says mortgage lender in statement

Mortgage lender LIC Housing Finance has revised its home loan rates upwards by 35 basis points (bps), effective from December 26. The new rates start from 8.65 per cent, said the company in a statement on Monday.

LIC Housing’s announcement comes after the six-member monetary policy committee of the Reserve Bank of India (RBI) raised the benchmark policy rate—the repo rate—by 35 bps earlier this month.

“The increase in rates is in tune with the market conditions. As far as the real estate sector is concerned, there is good sustenance in the home buying activity,” said Y Viswanatha Gowd, managing director and chief executive officer of LIC Housing Finance.

Last week, HDFC Ltd had also hiked its home loan rates by 35 bps. Now, the home loan rates for HDFC Ltd starts from 8.65 per cent for credit scores of 800 and above.

HDFC Ltd has passed on the entire rate hike done by the MPC of the RBI to borrowers. The committee has hiked the policy rate by 225 basis points since May, and so has HDFC Ltd.