Linking borrowers’ credit rating to lending rates, LIC Housing Finance has reduced its Home Loan lending rates by 60 basis points (bps) for new customers having a CIBIL Score of 800 or above. The new LIC Home Loan Rate stands at 7.5% for customers with a good Credit Score. The new rates will be effective immediately.
Furthermore, the leading housing finance company has offered a concession of 10 bps to the customers who have covered their Home Loan. The lender has not placed any capping on the loan amount. Customers of any loan amount will be able to tap the benefit of a reduced lending rate. In its official statement, LIC HFC says: An additional reduction of 10 bps i.e., 7.40% will be offered if the customer assigns new or existing single premium term assurance policy with the sum assured equal to the loan amount to LIC HFL.
As for customers who have below 800 CIBIL Score, the interest rate will start at 7.9% without the insurance policy and 7.8% with the loan insurance policy.
The decision to cut lending rate comes straight on the lines of the objective to bring confidence to the sector and support the real estate industry, and the economy said Siddhartha Mohanty, Managing Director & CEO of LIC Housing Finance Ltd.
Earlier this week, HDFC Bank had also reduced home loan interest rates by 15 bps. The HDFC Bank had followed a similar rate cut by the State Bank of India (SBI) a few days ago. The SBI had slashed its MCLR after the Reserve Bank of India had announced a 75 bps cut in the repo rate. The reduction in lending rates is targeted to boost borrowing to customers affected by the Coronavirus pandemic.