LIC Housing Finance has increased its interest rates in some of its schemes and created a separate slab for loans above Rs. 75 lakh following the tightening in home loan lending norms.
The Reserve Bank of India (RBI) had tightened home loan regulations recently. It had increased the risk weight on loans above Rs. 75 lakh to 125 per cent, capped the loan to value ratio at 80 per cent. It also introduced a 2 per cent provisioning for ‘teaser’ loans.
Mr. R.R Nair, Director and Chief Executive of LIC Housing Finance said that it has split its 9.25 per cent fixed advantage scheme into 3 slabs. For loans up to Rs. 15 lakh, the interest rate will be 9.25 per cent. For loans between Rs. 15-75 lakh, the rate will be 9.5 per cent and for loans above Rs. 75 lakh, the rate will be 9.75 per cent.