LIC Housing Finance, the second-largest mortgage company in the country, has lowered down their rate of interest for individual home loan borrowers with immediate effect. However, it will be followed by certain guidelines.
The rate of interest for the new customers having CIBIL score of 800 or more is 7.5% for any amount of loan. An additional reduction of 10 basis points which is 7.40% will be offered to the customers who will sign or have existing single premium term assurance policy with the sum assured equal to the loan amount to LIC HFL. CEO of the company has also added that they want to bring back the confidence and support the real estate industry and the economy.
The rate of interest is linked to the creditworthiness reflected by CIBIL scores of the borrowers. In addition, the term insurance policy could be from any insurance company and not necessarily the Life Insurance Corporation. The only condition was that the amount should be enough to cover the size of the loan and the premium for the loan should be paid upfront.
The company’s branches have started operations in some areas while in most other places staff are working from home.
The company has also added that they have identified 14 projects to be referred to as the alternative investment fund (AIF), set up by the government for last-mile funding. Life Insurance Corporation has also notified that there was no proposal to merge its subsidiary LIC Housing with any other entity.
Therefore, investment in property can be considered as an opportunity with such low-interest rates offered by the companies.