In order to compete with players in housing finance space, LIC will now offer home loan at all time low rate of 6.9%. Others in the segment offer rates of up to 6.95% including the likes of HDFC and SBI.
In a statement, the company said that for new home loans including balance transfer of up to Rs. 50 lakh, the bank will charge loan at the rate of 6.9% for borrowers with CIBIL (Credit Information Bureau) score of 700 and above. In the case of similar case, the interest rate on loan over Rs. 50 lakh is 7% onwards.
Siddhartha Mohanty, MD & CEO, LICHFL, observed that home loan interest rates are at an all-time low for the company, resulting in low EMI (equated monthly instalment) payment for borrowers."Attractive price points and affordable EMI will aid in addressing the demand side for buying homes. As we adapt to a new normal of living and working conditions, home ownership is considered as an important sense of social security," Mohanty said.
Also for pensioners the housing finance company has rolled out a new loan product called Griha Varishtha'. This is for a tenure of up to 30 years until the borrower attains 80 years of age or whichever is earlier.
Per the statement, this product is for retired or serving employees of PSU insurers, Central/State government, railways, defence, banks, etc entitled to pension benefiting from Defined Benefit Pension Scheme.