LIC Housing Finance raises interest rate on home loans by 20 bps for select borrowers

The mortgage financier (LIC HFL) on Friday raised the interest rate on home loans by 20 basis points to 6.9 percent from 6.7 percent for selected borrowers.

For borrowers with a CIBIL score of 700 or higher, the rate increase has been limited to just 20 bps, LIC Housing Finance said in a statement, adding that the revised rates are applicable from Friday.

For customers who have a CIBIL score (less than 700), the maximum increase is 25 basis points (bps). For NTC clients (New to Credit) the increase is 40 bps.

CIBIL Score is a 3-digit numerical summary of a customer’s credit history. It varies between 300 and 900. The closer the score is to 900, the better the credit score.

The increase in the lending rate follows a 40 basis point increase in the repo rate to 4.40 percent by the Reserve Bank of India last week.

“After a long time RBI raised policy rates and the effect is being seen across all lenders. We have kept our mortgage loan rates competitive despite the rising cost of funds to support homebuyer aspirations.” “said the CEO of LIC HFL. and CEO Y Viswanatha Gowd said.

Many banks, including

and revised their lending rates based on the marginal cost of funds and the repo rate.

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