Good news! Repay your home loan with lower EMIs and that too till 75 years of age!

In what comes as a major good news for homebuyers in India, LIC Housing Finance (LICHFL) has partnered with India Mortgage Guarantee Corporation (IMGC) to offer a special loan scheme. The new product allows homebuyers to repay their loan till the age of 75 years. This not only increases the tenure of loan repayment but also reduces the EMIs to be paid. Under the new partnership, IMGC will provide LICHFL with mortgage guarantee which is a kind of financial product that compensates financial institutions for losses that may arise from a default on a mortgage loan.

The partnership would allow LICHFL to accommodate more home loan borrowers and increase market penetration besides combating NPAs. This would also help LICHFL accommodate more home loan buyers, improve eligibility criteria, extend repayment period and ease restrictions on profile of applicants, who face rejection related to work profile, work place, credit history amongst other reasons which may be unspecified by lending institutions.

Speaking about the partnership, Vinay Sah, MD & CEO, LICHFL said that the move would also help IMGC to add more home loan borrowers and mitigate risk across lending categories. 

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"We will also be able to tap into the large segment of employees working in SMEs, MSMEs, small entities and self-employed individuals who have so far been out of the ambit of prospective home loan borrowers. Through this LIC HFL would support the vision of Housing for All by 2022 of the Government of India," Sah said.

LIC Housing Finance Ltd is one of the largest housing finance companies in India and India Mortgage Guarantee Corporation (IMGC) is a joint venture between National Housing Bank, Genworth Inc, International Finance Corporation and Asian Development Bank.

Mahesh Misra, CEO, IMGC said that with the back-up of IMGC's, LICHFL will be in a position to offer extended loan tenure for borrowers till the attainment of age of 75 years. "IMGC and LICHFL teams have worked closely to design customised products that are aligned to LICHFL's end user segment and calibrated expansion strategy," he said, while adding that it would help increase in loan quantum and reduce the burden of monthly EMIs for borrowers.