Following the Reserve Bank of India’s Monetary panel committee (MPC) announcement on increase in the rates, Mortgage lender LIC Housing Finance Limited on Friday hiked its lending rates by 0.50 per cent.
Following the Reserve Bank of India’s Monetary panel committee (MPC) announcement on increase in the rates, Mortgage lender LIC Housing Finance Limited on Friday hiked its lending rates by 0.50 per cent.
The company increased the LIC Housing Prime Lending Rate (LHPLR) by 0.50 per cent. LHPLR is the benchmark rate to which the interest rate on LIC HFL’s loans are linked.
Its managing director and chief executive Y Viswanatha Gowd told PTI that the hike is in line with the prevailing market condition.
“We expect this trend to stabilize soon. We are taking care to price our products adequately so that the EMI outgo for our customers remains reasonable,” he said.
The MD added that the company is confident that the sentiment in the real estate industry will be buoyant during the festive season and the fundamental parameters of the Indian economy will continue to be strong.
The RBI on Friday raised benchmark lending rate by 50 basis points, the fourth straight increase since May, as it extended its battle to tame stubbornly high inflation.
Earlier, reacting to the rate hike by the RBI, Rahul Chander, MD & CEO of Livfin (Fintec NBFC), said that the repo rate increase was on expected lines given the concern over inflation and global headwinds.
RBI’s further calibrated withdrawal of monetary accommodation signals that there will possibly be more rate increases in the near future, though we expect future rate increases to be smaller, he said.
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“While this Repo rate increase will elevate borrowing cost for the MSMEs, the headline inflation-containing measure is required at this time as moderation of inflation is a must to boost market demand and enhance profitability of small businesses. If the RBI keeps future rate hikes range-bound, small businesses should be able to manage reasonably well,” he added.
Earlier, HDFC Ltd also hiked its lending rate by 50 basis points hours after the Reserve Bank raised the benchmark interest rate to tame inflation. The move would increase EMIs for housing loans by the firm.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022,” the country’s biggest housing finance company said in a statement.
This is the seventh rate increase undertaken by HDFC in the last five months.
Other financial institutions and banks are also expected to follow suit after the RBI on Friday raised the key interest rate by 50 basis points, the fourth straight increase since May.
