Home loans: All time low - Good news! Check new rate of LIC Housing Finance

In a good news, mortgage financier LIC Housing Finance Ltd (LICHFL) has confirmed that it has reduced interest rate to an all-time low of 6.90 per cent for new home loan borrowers having Cibil score of 700 and above. LICHFL in a statement said the rate of interest for home loans up to Rs 50 lakh starts from 6.90 per cent for borrowers with CIBIL score of 700 and above. For a similar score, the rate of interest is 7 per cent onwards for a loan above Rs 50 lakh, it added.

"Home loan interest rates are at an all-time low for the company and thereby resulting in low EMI payment. Attractive price points and affordable EMI will aid in addressing the demand side for buying homes," LICHFL Managing Director and CEO Siddhartha Mohanty said. Through this product, the company is trying to create demand, he added.

In April, the home financier had cut its home loan rates to 7.5 per cent for new home buyers having a Cibil score of 800 and above.

Mohanty added there has been a softening of cost of funds after reduction in repo rates by RBI in recent months. The company's cost of fund currently stands at around 5.6 per cent. He said below 25 per cent of the company's total book is under moratorium. Of its construction finance loan book of Rs 13,000 crore, around Rs 8,500-9,000 crore is under moratorium.

The housing finance company also launched a special home loan product, Griha Varishtha, for pensioners. The tenure is till 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/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. Additional benefits under this scheme include six EMI waiver for customers going for ready to move units or 48 months moratorium period for purchase of under-construction units.