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, according to the news agency. PTI report.
LIC Housing Finance in its statement said that for borrowers with a CIBIL score of 700 and above, the rate hike was limited to just 20 basis points. It is important to note 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) customers, the upside is 40 basis points, according to the company’s statement.
What is the CIBIL score?
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.
Meanwhile, LIC HFL Managing Director and CEO Y Viswanatha Gowd said: “After a long time RBI has raised policy rates and the effect is felt across all lenders. We have maintained our rates competitive mortgages despite the rising cost of funds to support the aspirations of homebuyers.
The move comes after several banks including HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vysya Bank revised their lending rates based on the marginal cost of funds and repo rate.
(With agency contributions)