Good news for home loan borrowers.
LIC Housing Finance Limited (LICHFL), India’s leading housing finance mortgage loan firm on Wednesday reduced home loan interest rates to an all-time low.
The mortgage lender stated that there will be an interest rate of 6.90 percent for a borrower having a CIBIL score of 700 and above for loans up to Rs 50 lakh.
Buyers taking home loans above Rs 50 lakh will have to pay an interest rate of 7 percent.
Siddharth Mohanty, managing director and chief of LICFL Executive Officer (CEO)) said “Home loan interest rates are at an all-time low for the company and result in lower EMI payments. Attractive price points and cheaper EMIs will help address the demand side for purchasing homes”
Siddharth Mohanty also said the cost of money has softened in recent months following the reduction in repo rates by the Reserve Bank of India (RBI). The cost of the company’s funds is currently around 5.6 percent.
The Reserve Bank of India (RBI) in its last monetary policy meeting had reduced the repo rate by 40 basis points (bps) to 4 percent and the reverse repo rate from 40 bps to 3.35 percent.
LIC Housing Finance Limited also launched a special home loan product, Griha Varshis, yesterday.
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The product caters to Central / State Government, retired or serving employees of PSU insurance companies, Railways, among others entitled to pension under defined benefit pension scheme.
Tenure is 80 years of age or maximum 30 years. Under the Home Building Scheme, customers are granted a six-month EMI exemption to be ready to move units or a 48-month grace period for the purchase of units under construction.
For higher loan eligibility, the applicant can also apply jointly with their earning children.