Mortgage financier LIC Housing Finance Ltd. (LICHFL) has declared a cut in its home loan interest rates to as low as 6.9%, especially if you have a great credit history and a CIBIL score of at least 700.
Home Loan Interest Rates
While the interest rates start at 6.9%, the company can also charge you an interest rate of 7% if the principal loan amount you applied for exceeds Rs. 50 lakhs.
As stated by Siddhartha Mohanty, Managing Director and CEO, LICHFL, low interest rates will help reduce the Equated Monthly Installments (EMIs) to be paid by people. This, along with other attractive features and price points, will help deal with the demand for homes adequately.
As of April, the company had reduced its home loan interest rates to 7.5% for the new buyers with a CIBIL score of 800+. It also has launched a special home loan product ‘Griha Varishtha’ for pensioners. The tenure for this new scheme is until the age of 80 or a maximum of 30 years, whichever is earlier.
The cost of funds for the company had reduced to around 5.6% due to the reduction of the repo rate by the Reserve Bank of India in this quarter. Below 25% of the company’s total book is under moratorium. Around Rs. 9000 crores of its construction finance loan book of Rs. 13000 crores in under moratorium.