LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut

New Delhi [India], June 21 (ANI): LIC Housing Finance has reduced its rate of interest on new home loans by 50 basis points, in line with the similar degree of repo rate cut by yje Reserve Bank of India (RBI).
With this revision, interest rates on new home loan sanctions will now start from 7.50 per cent, effective June 19, 2025, coinciding with the company's 36th Foundation Day, it said in a statement Saturday.
This move by LIC Housing Finance is aimed at passing on the benefit to new home loan customers to encourage home ownership and improve affordability.
The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy.
After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts is limited, RBI Governor Sanjay Malhotra had hinted after the latest monetary policy meeting.
Tribhuwan Adhikari, MD and CEO, LIC Housing Finance said 'As we mark our 36th Foundation Day, we remain committed to making home ownership more accessible. The rate cut is a continuation of our effort to align with RBI's policy direction and pass on the benefits to our customers.'
'We are confident this move will provide an added boost to housing demand, especially in the affordable and mid-income segments, where aspirations of owning a home are closely tied to interest rate dynamics,' the MD and CEO added.
LIC Housing Finance Ltd is a leading housing finance company having networks of offices across India and a representative office in Dubai.
In addition, the Company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd.
LIC Housing Finance Ltd was promoted by Life Insurance Corporation in 1989, and a public issue was made in 1994. (ANI)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

2 hours ago

• Business Standard

Air fares surge post Ahmedabad plane crash, rampant price gouging

Following the Ahmedabad plane crash, a sharp increase in air ticket prices is observed, something that can be described as price gouging, or charging excessively high rates. According to reports, nearly 41 per cent tickets have been cancelled, said Tourism and Hospitality Skill Council Chairperson Jyoti Mayal. A travel agent mentioned that a ticket, which was priced slightly above Rs 6,000 before the accident, is now being sold for around Rs 34,000. Mayal said that there has been a significant rise in ticket cancellations following the Ahmedabad plane accident. Speaking to ANI, she said, "I don't want to take names, but some airlines have increased their ticket prices. This is reportedly because flights that are running full due to cancellations have seen a spike in ticket fares. According to her information, around 41 per cent of tickets have been cancelled. However, similar trends were also noticed recently in connection with Jammu and Kashmir." She further mentioned that they are receiving queries from people asking whether the prices of exit row seats will now increase. "I would like to clarify that there is no such information yet suggesting that the fares for exit row seats have increased. She said that it is certain that most people are now demanding seats in the exit row. She also pointed out that travel agents have suffered significant losses in recent days. Whenever any adverse situation arises, the travel trade is the first to be affected," she told ANI. Roopak Punyani, owner of Delhi-based travel company Travel Canvas India Private Limited, said that apart from the overall global situation and recent tensions between India and Pakistan, the Ahmedabad accident has had a serious negative impact. Cancellations are mainly coming from the corporate sector. Most people are now ensuring that they avoid flying in Boeing aircraft, he said. While he did not directly say that this has caused a rise in ticket prices, he noted that direct flights from certain locations are no longer operating. As a result, passengers are having to pay higher fares due to having to travel on connecting flights. Saurabh Tiwari, a travel agent at Sushant Travels, Delhi, said that they are receiving a large number of flight ticket cancellation requests. Passengers are quite scared. Some travellers are even converting their air travel plans into train journeys, causing them significant inconvenience and loss. He also mentioned that cancellations have impacted ticket prices, leading to a surge. For example, a flight from Delhi to Dhaka, which used to cost around Rs 7,000 to Rs 9,000, is now priced between Rs 30,000 to Rs 34,000. According to him, airline companies have increased ticket fares, and this change is being seen due to the cancellation of Air India flights following the Ahmedabad plane accident. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

The Hindu

5 hours ago

• The Hindu

Banks must act with social commitment, says MP

MP for Mysuru Yaduveer Krishnadatta Chamaraja Wadiyar on Saturday said banks should not simply chase profits but also operate with a strong sense of social responsibility. Presiding over the District-Level Advisory and Progress Review Committee meeting in Madikeri, Mr. Yaduveer called upon banks to extend lending support to farmers, small and medium enterprises, traders, and cottage industries. 'Inclusive development is the need of the hour, and banks must play an important role in ensuring it,' he said. He urged banks to strictly adhere to Central government guidelines and provide greater assistance to priority sectors such as agriculture, horticulture, animal husbandry, and fisheries. 'Banks should function as partners in realising Prime Minister Narendra Modi's vision of inclusive and sustainable development,' Mr. Yaduveer said. Stressing on the importance of language and communication, he said staff of nationalised banks should learn Kannada to connect better with local communities. 'It not only helps in addressing grievances efficiently but also strengthens public trust,' he added. RBI Assistant General Manager Suraj said that an online Kannada learning initiative for bank employees has already been launched. Presenting the overview of bank performance in the district during 2024-25, Lead Bank Manager Gangadhar Nayak said banks achieved 99% of the agricultural loan disbursement target, 97% in small-scale industries, 100% in educational loans, 74% in the housing sector, 104% in other priority sectors, 98% overall in the priority sector, and 117% in non-priority sector lending. The Annual District Credit Plan target for the year 2025–26 has been pegged at ₹7,680.10 crore. Sector-wise allocations include ₹3,477.86 crore for crop loans, ₹1,388.42 crore for small and medium industries, ₹33.27 crore for educational loans, ₹59.46 crore for the housing sector, and ₹115.53 crore for other priority sectors — totalling ₹5,074.54 crore for all priority sectors. A sum of ₹2,606.56 crore has been earmarked for non-priority sectors, he said. Zilla Panchayat Chief Executive Officer Anand Prakash Meena, Additional Deputy Commissioner R. Aishwarya, and officials from various departments and corporations attended the meeting.

India Gazette

5 hours ago

• India Gazette

LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut

New Delhi [India], June 21 (ANI): LIC Housing Finance has reduced its rate of interest on new home loans by 50 basis points, in line with the similar degree of repo rate cut by yje Reserve Bank of India (RBI). With this revision, interest rates on new home loan sanctions will now start from 7.50 per cent, effective June 19, 2025, coinciding with the company's 36th Foundation Day, it said in a statement Saturday. This move by LIC Housing Finance is aimed at passing on the benefit to new home loan customers to encourage home ownership and improve affordability. The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy. After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts is limited, RBI Governor Sanjay Malhotra had hinted after the latest monetary policy meeting. Tribhuwan Adhikari, MD and CEO, LIC Housing Finance said 'As we mark our 36th Foundation Day, we remain committed to making home ownership more accessible. The rate cut is a continuation of our effort to align with RBI's policy direction and pass on the benefits to our customers.' 'We are confident this move will provide an added boost to housing demand, especially in the affordable and mid-income segments, where aspirations of owning a home are closely tied to interest rate dynamics,' the MD and CEO added. LIC Housing Finance Ltd is a leading housing finance company having networks of offices across India and a representative office in Dubai. In addition, the Company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd. LIC Housing Finance Ltd was promoted by Life Insurance Corporation in 1989, and a public issue was made in 1994. (ANI)