LIC Housing Fin, Bajaj Housing Fin hike lending rates by 0.50 pc

Mortgage lenders Bajaj Housing Finance and LIC Housing Finance on Monday announced a 0.50 percent hike each in their lending rates.

The revisions come amid a rising interest rates scenario, which has seen the RBI hiking its key lending rate by 1.40 percent since May to tame inflation.

Bajaj Housing Finance hiked its rate by 0.50 percent, and the lowest priced product for the salaried and professional applicants will be 7.70 percent now, as per an official statement.

Despite the latest hike, the company claimed to be offering loans at competitive rates compared to most of its peers.

LIC Housing Finance has increased its prime lending rate (LHPLR) by 0.50 percent and the new interest rates on home loans will now start from 8 percent as against 7.50 percent previously.

The company's chief executive and managing director Y Viswanatha Gowd said the RBI's decision to hike the repo rate by 0.50 percent has caused ''minimum fluctuation'' in monthly installments or tenure of home loans and exuded confidence that demand for housing will remain robust.