LIC to infuse equity capital worth Rs 2,334 in LIC Housing Finance
LIC's shareholding in the housing financier post the allotment of shares will go up to 45.24 per cent from over 40.31 per cent currently.
LIC Housing Finance Ltd, one of the leading housing finance company in India announced a hike in lending rates.
On Monday. It increased its Prime Lending Rate (PLR), the rate at which it charges to its creditworthy borrowers, by 50 basis points.
The new interest rates on home loans will now start from 8, earlier it was 7.50 per cent. The new rates will be effective from Monday.
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The decision was taken in cognisance with increase in repo rate by Reserve Bank of India (RBI). RBI in its recent monetary policy hiked repo rate by 50 basis points to tackle inflation that is continuously above the upper tolerance band for months.
Y. Viswanatha Gowd, MD & CEO LIC housing finance ltd referred the hike in line with RBI’s decision to hike in the repo rate and current global economic trends.
“As expected, the RBI’s decision to hike the repo rate by 50 basis points on 5th August was well measured and abreast with the global economic trend. The hike in repo rate has caused some minimum fluctuation in the EMIs or the tenure on the home loans but demand for housing will remain robust. Hence, the interest rate hike of LIC HFL is in line with the market scenario,” said Y. Viswanatha Gowd, MD & CEO.
The hike in repo rate by 50 basis point took it to pre COVID pandemic level resulting in an increase in EMI of Home, auto and other loans.
(inputs from IANS)
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