MUMBAI: Mortgage lender LIC Housing Finance introduced an all-time low interest rate rate of 6.9% for new home loan borrowers. To bring in rate parity even current borrowers will be able to enjoy this new rate of interest.
The rate of interest for home loans up to Rs 50 lakh starts from 6.9% for borrowers with CIBIL score of 700 and above. For a similar score, the rate of interest is 7% onwards for loan above Rs 50 lakh.
“Home loan interest rates are at an all-time low for the company thereby resulting in low EMI payment, attractive price points and affordable EMI will aid in addressing the demand side for buying homes,” said Siddhartha Mohanty, MD & CEO of LIC Housing Finance. “There is no dearth of liquidity what is lacking is consumption demand through this product we are trying to create that.”
The mortgage lender said it’s total loans under moratorium was below 25%, out of which 60% of the construction finance book was under moratorium. From its total construction book of Rs 13,000 crore, upwards of Rs 8000 crore of loans are under moratorium. The silver lining is more than 46,000 borrowers largely retail, have started paying their dues, Mohanty said.
“We are seeing stress in the project finance segment and we are looking to address that. Right now the borrowers are taking relief due to moratorium provided,” he said.
The mortgage lender also launched a special home loan product ‘Griha Varishtha’ for pensioners. The tenure is till the attainment of 80 years of age or maximum up to 30 years, whichever is earlier.
This specially designed product caters to retired or serving employees of PSU insurers, central and state government, railways, defence, banks among others, entitled to pension under Defined Benefit Pension Scheme. For higher loan eligibility, the applicant can also jointly apply with their earning children.