LIC Housing Finance Cuts Lending Rates To 7.50 Per Cent On New Home Loans
Mumbai: LIC Housing Finance on Saturday said it has reduced rate of interest on new home loans by 50 basis points. With this revision, interest rates on new home loan sanctions will now start from 7.50%, effective June 19, coinciding with the company's 36th Foundation Day.
This move follows the recent repo rate cuts announced by the RBI's Monetary Policy Committee (MPC), with LIC HFL passing on the benefit to new home loan customers to encourage home ownership and improve affordability.
'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,' said Tribhuwan Adhikari, MD and CEO, LIC Housing Finance.
'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,' he added.
Earlier this week, the State Bank of India (SBI) reduced its lending rate by 50 basis points following the Reserve Bank's policy rate cut. With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of SBI would come down by 50 basis points to 7.75 per cent.
SBI has also reduced the External Benchmark Based Lending Rate (EBLR) by similar basis points to 8.15 per cent from 8.65 per cent earlier. The State Bank of India revised interest rates came into effect from June 15.
Following the RBI action, most of the banks have slashed lending rate. Earlier, HDFC bank had also cut its lending rate to offer a maximum interest rate of 6.6 per cent per annum on Fixed Deposits with principal amount less than Rs 3 crore for general citizens.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
NTPC fundraising: Board clears Rs 18,000 crore bond, NCD plan; postal ballot to follow
NEW DELHI: State-run power major NTPC Ltd on Saturday said its board has approved a proposal to raise up to Rs 18,000 crore through issuance of non-convertible debentures (NCDs) or bonds via private placement in the domestic market. Tired of too many ads? go ad free now According to a regulatory filing, the company's board gave its nod during a meeting held earlier in the day, and also cleared a draft notice for a postal ballot to seek shareholder approval for the fundraising plan, PTI reported. NTPC said the fundraising will be done in one or more tranches, not exceeding 12, during the one-year period from the date of passing the special resolution by shareholders. The company has fixed Friday, June 21, as the cut-off date to determine the names of members entitled to receive the postal ballot notice and exercise voting rights. The proposed NCDs or bonds will be issued on a private placement basis, the company said, without disclosing the exact timing or the utilisation plan for the proceeds.
Time of India
27 minutes ago
- Time of India
Plans to make mutual fund rules more investor and industry friendly: Sebi official
Live Events The Securities and Exchange Board of India (SEBI) is undertaking a comprehensive review of mutual fund regulations to make them more investor-centric and industry-friendly, a senior official said on Saturday."We are reviewing the entire mutual fund regulatory framework to enhance ease of doing business for all stakeholders, including the regulator," SEBI executive director Manoj Kumar said at the 17th Mutual Fund Summit organised by the Indian Chamber of Commerce (ICC) regulations governing the sector are among the lengthiest and require simplification to keep pace with evolving investor needs and industry innovations, stakeholders said."The process has started and soon we will come out with draft regulations for feedback and consultation process before it is finalised," Kumar said without giving any timeline for the rollout of the new outlined the regulator's strategic roadmap to strengthen India's securities market, with mutual funds positioned as a critical pillar in fostering inclusive financial growth and investor protection.A consultation paper on regulations which governs advisory functions in mutual funds is also in the the event, Kumar said India has undergone major market transformations under SEBI's include the shift to an electronic trading ecosystem in 1998, followed by achieving 100 per cent dematerialisation of shares, making India the only jurisdiction globally to do so."The third transformation is unfolding now through the mutual fund revolution," he said, calling it a cornerstone of SEBI's "optimum regulation" approach, one that seeks balance among the interests of the regulator, the industry, and India's mutual fund industry has crossed Rs 72 lakh-crore in AUM and monthly SIP contributions have touched Rs 28,000 crore, the investor base remains limited to just five crore in a population of 140 crore, Kumar pointed is also actively reviewing scheme categorisation norms to make them more intuitive for investors, while ensuring all offerings remain "true to label" to prevent offer wider choice to investors, SEBI has approved a new product category, referred to as SIF, aimed at investors with ticket sizes between Rs 10 lakh and Rs 50 funds were selected to manage these products given their established governance and handling of retail SEBI has opened faster registration windows for Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) with similar industry concerns over stress test disclosures for mid- and small-cap funds, Kumar reaffirmed SEBI's disclosure-based regulatory model, stressing that informed investors are central to market he acknowledged that some disclosure requirements may seem burdensome, he assured stakeholders that SEBI remains open to feedback and streamlining urged the industry to avoid situations that warrant regulatory intervention, saying, "Our goal is not to disrupt but to allow business to thrive."Highlighting the untapped potential in eastern India, Kumar said SEBI views West Bengal and the Northeast as strategic regions for mutual fund expansion, underscoring the need for targeted penetration this vision, AMFI chief executive V N Chalasani said India is transitioning from financial inclusion to financial well-being, where saving smartly and investing wisely will enable sustainable wealth cited the exponential growth of mutual funds post-2017, following SEBI's investor education mandate, which helped expand the investor base and improve financial Chalasani pointed out that India's mutual fund AUM still forms only about 20 per cent of GDP, compared to a global average of 65 per stressed the need for deeper financial literacy, especially in Tier 3 and 4 cities, where AMFI is focusing through school and university programmes, distributor expansion via India Post, and new product innovations aimed at mid-income investors."Every Indian can evolve from a saver to an investor and ultimately a wealth creator," he said, calling for sustained collaboration between regulators, industry, educators and investors to build an empowered, financially resilient India. PTI
Business Standard
35 minutes ago
- Business Standard
RBI reduces priority sector lending requirement for small finance banks
PSL requirement will reduce to 60% from 75% earlier The Reserve Bank of India (RBI) has reduced the mandatory priority sector lending requirement for small finance banks (SFBs) to 60% from financial year 2025-26 onwards as against existing requirement of 75%. As per the Guidelines for Licensing of Small Finance Banks in Private Sector dated 27 November 2014 a SFB is required to extend 75% of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL). Further, while 40% of its ANBC should be allocated to different sub-sectors under PSL, the SFB can allocate the balance 35% to any one or more sub-sectors where it has competitive advantage. On a review, it has been decided that financial year 2025-26 onwards, the additional component (35%) of PSL shall be reduced to 20%, thereby making the overall PSL target as 60% of ANBC or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher. The SFB shall continue to allocate 40% of its ANBC or CEOBE, whichever is higher, to different sub-sectors under PSL as per the extant PSL prescriptions, while the balance 20% shall be allocated to any one or more sub-sectors under the PSL where the bank has competitive advantage.
