LIC HFL hikes lending rate by 0.50%

New Delhi: Mortgage lender LIC Housing Finance on Friday hiked its lending rates by 0.50 per cent, hours after a similar move by the RBI.

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 said 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 Reserve Bank of India (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.