Good News for Home Loan Borrowers! LIC HFL Cuts Interest Rates; Launches Housing Finance Scheme for Pensioners

LIC Housing Finance Ltd has cut down its Home Loan interest rates to an all-time low of 6.90 percent for new borrowers with high credit rating.

The press statement of LIC HFL said: All the new borrowers who need housing finance for up to Rs 50 lakh can now borrow at lowest ever rate of 6.90 percent, provided they have CIBIL score of 700 or above. For Home Loans above Rs 50 lakh, the rate of interest is capped at 7 percent and more with similar credit rating requirement.

This is the lowest ever Home Loan Interest Rate offered by LIC Housing Finance Company and thus customers can tap the benefit of affordable EMIs.

Just a few months ago- in April 2020, the lender had slashed its home Loan rates to 7.5 percent for borrowers with CIBIL score of 800 or above.

The softening rates are followed by RBI’s historical reduction in repo rates since March 2020. As per the press statement, LIC HFL’s cost of funds is currently around 5.6 percent.

Greh Varishtha Scheme for Pensioners

The LIC Housing Finance Company has also launched a special Home Loan Product, Griha Varishtha, for senior citizens drawing pension. The tenure is extended till 80 years of age or maximum up to 30 years, whichever is earlier. The product is structured for retired or serving employees of PSU insurers, Central/state government, railways, defence, banks, etc.

For increasing the loan eligibility, the pensioner can also jointly apply with their children filing ITR.

The most attractive points of the scheme are:

1. Waiver of six Equated Monthly Installments (EMI) for customers going for ready to move units
2. 48 months moratorium for purchase of under-construction units.

The borrower can choose any of the above as per the eligibility.

Amid Covid Times, customers can thus make use of attractive reality prices and reduced interest rates.