MUMBA: Following the Reserve Bank of India's recent decision to increase the policy repo rate, LIC Housing Financing Ltd, a leading housing finance company in India, announced on Monday a 50 basis point rise in lending rates. 

The LIC Housing Prime Lending Rate (LHPLR) has raised by 50 basis points, or 0.50 percent, as of August 22, 2022, according to a statement from LIC Housing Finance Ltd.

The benchmark rate, or LHPLR, is used to determine how much interest is charged on loans made by LIC Housing Finance Ltd. The new starting point for mortgage interest rates is 8%. Mortgages from the past started at 7.50 percent. 

LIC Housing Finance Ltd.'s Managing Director and Chief Executive Officer, Y Viswanatha Gowd, commented on this change in interest rates by saying, "As anticipated, the RBI's decision to increase the repo rate by 50 basis points on August 5th was well-considered and in line with the general direction of the world economy. The EMIs or the loan tenure on some house loans have fluctuated slightly due to the increase in repo rate, but housing demand will continue to be strong. Hence, LIC HFL's interest rate increase is consistent with the state of the market."

The Reserve Bank of India's Monetary Policy Committee which met during 3-5 August unanimously decided to increase the policy repo rate by 50 basis points to 5.4 percent. On August 5, the announcement of the policy rate increases was made. As a result, the Bank Rate and the marginal standing facility (MSF) rate have been changed to 5.65 percent and 5.15 percent, respectively. The MPC also made the decision to keep its attention on the removal of accommodation in order to guarantee that inflation will continue to be within the target going forward while promoting growth.

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