After HDFC, LIC HFL hikes home loan interest rates: Check by how much your monthly EMIs will go up

LIC Housing Finance Limited has increased the home loan interest by up to 0.40%.

New Delhi: LIC Housing Finance Limited (LIC HFL) has become the latest mortgage financier to hike the interest rates on home loans by 20 basis points or 0,2% to 6.9 per cent, from 6.7 per cent. However, the latest hike in the interest rate will impact select borrowers, the lender said in its statement. The increased interest rates are applicable from Friday.

LIC Housing Finance said that for borrowers with a CIBIL score of 700 and above, the recent home loan interest rate hike has been capped to 20 basis points or 0.20 per cent. The lender also noted that the interest rates have been increased by 25 basis points or 0.25% and 40 bps or 0.40% for borrowers having CIBIL score (less than 700) and NTC (New to Credit) customers.   

For the unversed, CIBIL Score is a 3-digit numeric summary of a customer's credit history. The credit score ranges from 300 to 900. The better the CIBIL Score, the better the credit rating is.

LIC HFL has increased the home loan lending rates following the Reserve Bank of India’s (RBI) decision to hike repo rates by 40 basis points to 4.40 per cent. 

"RBI has after a long time increased the policy rates and the effect is being seen across the lenders. We have kept our home loan rates competitive despite the increase in the cost of funds to support the aspirations of home buyers," LIC HFL's Managing Director and CEO Y Viswanatha Gowd said. Also Read: LIC IPO: Will bidders make profit or face loss? Check what GMP, expected listing price suggests

Following the RBI decision, several public and private banks and lenders have increased interest rates on home loans based on the marginal cost of funds and repo rate. Some of the banks include HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vysya Bank. Also Read: SBI Q4 profit jumps 41% to Rs 9,114 crore on fall in bad loans