LIC Housing Finance Ltd, one of the leading housing finance companies in India, has increased the LIC Housing Prime Lending Rate (LHPLR) by 35 basis points. The new interest rates on home loans will start from 8.65 percent effective from Monday.
“The increase in rates is in tune with the market conditions. Despite the global headwinds disrupting many economies, India’s economic position remains strong. As far as the real estate sector is concerned, there is good sustenance in the home buying activity,” Y. Viswanatha Gowd, MD and CEO, said.
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LIC Housing Finance was promoted by Life Insurance Corporation in 1989 and a public issue was made in 1994. Later in 2004, the company launched its maiden GDR offering. In addition, the company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd.
Earlier, prominent banks have also been increasing their fixed deposit interest rates in India in accordance with the consequences of the RBI’s policy. The banks have altered their FD rates on a few specific maturity periods for terms between 12 months and 24 months.
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The lending division of Bajaj Finserv Limited – Bajaj Finance increased its fixed-rate (FD) rates by up to 25 basis points for terms of 12 to 24 months. The bank said updated FD rates would apply to new deposits and renewals up to Rs. 5 crores. Also, Kotak Mahindra Bank Limited last week hiked its interest rate by 7 percent in the 390 Days (12 months 25 days), 391 days, and 23 months tenors.
