LIC Housing Finance raises lending rates by 50 basis points

LIC Hosuing Finance, one of the largest housing finance companies in India, has increased its lending rate by up to 50 basis points, in line with peers.  As per the new rate slabs, a loan under Rs 30 lakh will be charged an interest of 10.65% per annum (p.a) while those over Rs 30 lakh but under Rs 75 lakh will be charged 11% p.a and a loan above Rs 75 lakh will be charged 11.50% p.a.

The RBI has hiked its key rates a record 11 times over since March 2010 in order to tame the uncomfortable inflation number, which stood at 9.44% for June.

Recently, LIC Housing Finance had unveiled a new home loan product ‘Freedom’ on a floating rate basis. As per the scheme, loans up to Rs 30 lakh would be offered at 9.9% p.a, loans between Rs 30-75 lakh at 10.35% p.a and loans of Rs 75-lakh-Rs 1.5-crore can be availed at 10.75% p.a.