The interest rate on home loans up to Rs 50 lakh will start from 6.90 per cent for borrowers who have a Cibil score of 700 or more. However, if the home loan amount goes up, the interest rate will also increase marginally above 7 per cent.
The new offer will be available for all new lenders who have a Cibil score of 700 or above. (Photo: Representational image)
Mortgage lender LIC Housing Finance has cut its home loan interest rate to an all-time low of 6.90 per cent for all new borrowers.
The interest rate on home loans up to Rs 50 lakh will start from 6.90 per cent for borrowers who have a Cibil score of 700 or more. However, if the home loan amount goes up, the interest rate will also increase marginally above 7 per cent.
The mortgage lender’s MD and CEO Siddhartha Mohanty said, “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.”
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Mohanty went on to add that there is no lack of liquidity at the moment and the real problem is consumption demand. He said that the new home loan offer may stimulate demand.
According to a report published on livemint.com, the mortgage lender had earlier cut its home loan interest rate to 7.5 per cent for lenders with Cibil score above 800 or more.
Mohanty went on to add that the lenders total loans under moratorium is below 25 per cent. He also mentioned that 60 per cent of the construction finance loan book was under moratorium.
This means that over Rs 8,000 crore of the lenders total finance loan book of Rs 13,000 crore is under moratorium.
It is worth mentioning that the mortgage lender also introduced a special home loan product, Griha Varishtha, for pensioners. The tenure is either till the attainment of 80 years or maximum up to 30 years, whichever comes earlier.
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