E LIC Housing Finance, the housing finance arm of Life Insurance Company, has decided to increase the interest rate of home loans by 50 basis points for its customers. Apart from this, Bajaj Housing Finance Limited has also announced to increase the interest rate of its home by 50 basis points.
New Delhi: If you are planning to take a home loan in the coming times, then there is a bad news for you. In fact, LIC Housing Finance, the housing finance arm of Life Insurance Company, has increased the interest rates of its home loans. Apart from this, Bajaj Housing Finance Limited has also made home loans costlier for its customers.
How expensive is the home loan
LIC Housing Finance, the housing finance arm of life insurance company, has decided to increase the interest rate of home loans by 50 basis points for its customers. Apart from this, Bajaj Housing Finance Limited has also announced to increase the interest rate of its home by 50 basis points. With the increase in interest rate, your monthly EMI on housing loan will also increase.
How much interest rate increased
After the latest hike, the minimum interest rate on LIC Housing Finance’s home loan is now 8 percent from 7.50 percent earlier. If you take a home loan of up to 50 lakhs, then you will have to pay the minimum interest rate of 8.05 percent. At the same time, the interest rate has increased to 8.25 percent for loans of more than 50 lakhs and 8.40 percent on home loans from 2 crores to 15 crores. This interest rate is for those with a CIBIL score of 700 or more.
Why loan became expensive
Let us inform that, after the meeting of the Reserve Bank of India’s monetary policy review, the repo rate was increased by 50 basis points. The Reserve Bank is continuously taking such steps to keep inflation under control. Due to the expensive repo rate, banks are getting funds at expensive rates, due to which they are increasing the interest rate on all types of loans.
