LIC Housing Finance came up with a new housing loan product named as ‘Griha Siddhi’ in order to match State Bank of India’s recent move to cut interest rate on homes loans in the affordable housing segment by up to 25 bps. State Bank of India had recently reduced interest rate on home loans up to Rs. 30 lakhs to 8.35 % (from 8.60 %).
It creates a special segment for women borrowers for loans up to Rs.5 lakhs at an interest rate of 8.35 % per annum. Rest borrowings will be on the interest rate of 8.40%, whereas, 8.50% shall be the rate for home loans up to Rs. 1 crores.
LICHFL, in a statement, said under Griha Siddhi, customised home loan will be offered for construction/purchase of house or flat and repairs/renovation to existing properties. Loans will be offered for a maximum tenure of 30 years or retirement age for salaried employees, while for other borrowers the maximum term is up to 25 years.
At present, under its affordable housing loan product, LICHFL was charging women 8.50 % interest and others 8.55 % for home loans in the Rs. 10-15 lakhs bracket. On loans above Rs. 15 lakhs and up to Rs. 20 lakhs, the interest rates were 8.55 % and 8.60 % for women and other borrowers, respectively. On home loans above Rs. 20 lakhs and up to Rs. 50 lakhs, the housing finance company’s interest rates were 8.65 % and 8.70 %, respectively.
Indiabulls Housing Finance Limited has reduced home loan rate by 15 basis points to 8.35% for women borrowers and to 8.40%/. EMI for loan tenure up to 30 years shall start at as low as Rs 758/- per lakhs.
HDFC reduced its interest rate on loans up to Rs 30 lakhs by 15 basis points for women borrowers and 10 basis points for all others.