Mumbai: LIC Housing Finance (LICHF), the second largest housing finance company, raised its LHPLR prime rate by 60 basis points (100 bps = 1 percentage point). The LHPLR is the benchmark rate to which the Company’s variable rate loans are linked. The new interest rates on home loans now start from 7.50% and are effective from June 20.
“The rise in interest rates is in line with the market scenario. If we compare them historically, the rates are still at a very competitive level. Therefore, we will see a sustained demand for home loans,” Managing Director and CEO Y Viswanatha Gowd said.
Last week, the country’s largest lender, SBI, raised interest rates on home loans by 50 basis points. Following this, the best house ready rates start at 7.55% – the same level as HDFC. This makes LICHFL rates the lowest among housing financiers.
Meanwhile, the Union Bank of India has raised its deposit rates. The bank said its interest rates on domestic term deposits of less than Rs 2 crore with maturities of 46 to 90 days are raised by 55 basis points to 4.05% from 3.5%, those with a duration of more than one year to two years are increased by 35 basis points to 5.45% from 5.1% and for a duration of 181 days to less than one year, the interest rate has been increased by 20 basis points to 4.6%.
“The rise in interest rates is in line with the market scenario. If we compare them historically, the rates are still at a very competitive level. Therefore, we will see a sustained demand for home loans,” Managing Director and CEO Y Viswanatha Gowd said.
Last week, the country’s largest lender, SBI, raised interest rates on home loans by 50 basis points. Following this, the best house ready rates start at 7.55% – the same level as HDFC. This makes LICHFL rates the lowest among housing financiers.
Meanwhile, the Union Bank of India has raised its deposit rates. The bank said its interest rates on domestic term deposits of less than Rs 2 crore with maturities of 46 to 90 days are raised by 55 basis points to 4.05% from 3.5%, those with a duration of more than one year to two years are increased by 35 basis points to 5.45% from 5.1% and for a duration of 181 days to less than one year, the interest rate has been increased by 20 basis points to 4.6%.