Mortgage financier LIC Housing Finance Ltd on Monday raised its prime lending Rate by 60 foundation factors (bps) and can now cost a minimal of seven.50% rate of interest on house loans. The non-banking finance firm (NBFC) in May elevated its lending charge by 20 bps to six.9%. The two consecutive hikes within the lending charge in two months comes on the again of the Reserve Bank of India growing coverage charges by 40 bps and 50 bps within the corresponding months.
Despite the hike, the NBFC expects the charges to be aggressive. “The interest rate hike is in line with the market scenario. If compared historically the rates are still at a very competitive level. Therefore, we will see a sustenance in demand for home loans,” Y Viswanatha Gowd, MD & CEO of LIC Housing Finance mentioned in a press release. Housing finance firms cost retail prime lending charge to debtors with greater CIBIL scores.
HDFC raised retail lending charge on housing loans by 50 bps whereas ICICI Bank elevated its externally benchmarked lending charge to eight.60% days after the RBI growing the coverage repo charge in June. Similarly, state-owned banks State Bank of India (SBI) raised house mortgage exterior benchmark lending charge by 40 bps to 7.05% whereas Bank of Baroda and Punjab National Bank (PNB) elevated its repo linked lending charge (RLLR) to 7.40%.
Since the coverage charge hike by the RBI, all banks have raised their marginal value of funds-based lending charges (MCLR). Kotak Mahindra Bank, ICICI Bank and HDFC Bank raised their MCLR for June by 30 to 35 bps. SBI, Bank of Baroda and Union Bank of India have additionally elevated their MCLR.
Source: www.financialexpress.com”