Mortgage financier LIC Housing Finance (LIC HFL) on Friday raised the interest rate on home loans by 20 basis points to 6.9%, from 6.7%, for some borrowers. For borrowers with a CIBIL score of 700 and above, the rate hike was limited to just 20 basis points, LIC Housing Finance said in a statement, adding that the revised rates are applicable from Friday.
For clients with a CIBIL score (less than 700), the maximum increase is 25 basis points (bps). For NTC (New to Credit) clients, the increase is 40 basis points. CIBIL Score is a 3-digit numerical summary of a customer’s credit history. It varies between 300 and 900. The closer the score is to 900, the better the credit score.
The increase in the lending rate follows a 40 basis point hike in the repo rate to 4.40% by the Reserve Bank of India last week. . We have kept our home loan rates competitive despite the rising cost of funds to support homebuyer aspirations,” said LIC HFL Managing Director and CEO Y Viswanatha Gowd. Many banks including HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vysya Bank have revised their lending rates based on the marginal cost of funds and the repo rate.