LIC HF hikes interest rates on home loans by 35 bps

LIC HF hikes interest rates on home loans by 35 bps
Housing Finance major, LIC Housing Finance has hiked interest rates on home loans by 35 basis points, said Economic Times.

The company has raised rates on two of its schemes, Bhagyalashmi Plus and Super Choice and has also launched a new scheme wherein it would charge a fixed interest rate of 11.50 per cent for 10 years.

"We do not have any plan to raise interest rates in immediate future because it will only add to the burden of our existing customers. But the current rates are not sustainable as it is hurting our margins," LIC Housing, MD and CEO, V K Sharma told media.

Giving the sigh of relief, the company has not hiked its prime lending rates, the rate which is linked to floating rate that is charged to customers- to protect the existing customers, added the media report.

V K Sharma further added that the move by LIC HF is also aimed to take care of shareholders interest since raising rates for new customers would ensure healthy margins.

Read more about: lic housing finance
Story first published: Wednesday, September 4, 2013, 12:41 [IST]
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