Mortgage financier LIC Housing Finance has increased its prime lending rate by 50 basis points from August 22. With this increase, home loan rates will now start at 8%, the company said. This comes after the company raised its retail prime lending rate by 60 basis points to 7.5% in June.

The company will impose an interest rate of 8.05% for borrowers with a CIBIL score of 700 up to Rs 50 lakh, 8.30%. It applies to those with a CIBIL score of 600-699 and 8.75% and those with a score below 600 rates, according to its website.

“Rising repo rates have resulted in little fluctuation in equal monthly instalments (EMIs) or home loan tenures, but demand for housing will remain strong. Therefore, LIC HFL’s rate hike is in line with market conditions,” MD and CEO Y Viswanatha Gowd said.

On August 5, the Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 5.4%. Gowd had earlier said that LIC Housing Finance would decide on lending rates after the RBI policy rate meeting. Earlier this month, the Housing Development Finance Corporation (HDFC) raised the retail prime lending rate by 25 basis points twice, once on August 9 and once on August 1.

HDFC said in its post-earnings analyst call that it has shifted from quarterly reset rates to monthly reset rates for home loan borrowers as the company sees the impact of rising interest rates on its margins.

Banks and other lenders are raising lending rates as the RBI raised the repo rate by 140 basis points since April. Almost all banks have raised the marginal cost of external benchmark lending rates and funds-based lending rates following the recent repo rate hike.