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Life Insurance Corporation-backed LIC Housing Finance has raised its prime lending rate by 60 basis points with effect from Monday onward. With this hike, the interest rate on home loans has also risen making EMIs costlier.

Managing Director and Chief Executive Officer Y Viswanatha Gowd said, "The interest rate hike is in line with the market scenario. If compared historically, the rates are still at a very competitive level. Therefore, we will see sustenance in demand for home loans," reported by PTI.

The new interest rates on home loans will now start from 7.50% with effect from June 20, as per the company's statement. 

As per the website, LIC Housing's prime lending rate (LHPLR) is set at 15.30%.

The interest rate is at 7.50% on home loans above or equal to 10 lakh for salaried and professionals. Also, the borrowers can only avail of this interest rate on a CIBIL score of greater or equal to 700.

Furthermore, salaried and professionals having CIBIL greater or equal to 700, will pay an interest rate of 7.55% on home loans up to 50 lakh, 7.755 on more than 50 lakh to 2 crore, and 7.90% on housing loans above 2 crore to 15 crore.

On CIBIL scores between 600-699, the interest rate will be 7.80% up to 50 lakh, 8% on more than 50 lakh up to 2 crore, and 8.15% on above 2 crore and up to 15 crore.

Less than 600 credit score will lead up to an 8.25% interest rate on home loans up to 50 lakh, 8.45% on over 50 lakh to 2 crore, and 8.65% on more than 2 crore to 15 crore.

On credit scores between 101-200 or NTC, the interest rate is 8.20% on loans up to 50 lakh, and 8.40% on more than 50 lakh to 1 crore for salaried and professionals.

Banks and financial institutions have begun to hike their lending rates after RBI increased the policy repo rate by 50 basis points to 4.90% for taming multi-year high inflation. So far in two months to date, RBI has hiked the repo rate by 90 basis points.

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