The lending company, LSI Housing Finance (LICHF) Ltd., has cut home loan rates in lieu of property. The subsidiary branch of LIC said on Wednesday that it had reduced home loan rates to 6.90 percent. This is the lowest ever home loan rate of LICHF. The company would provide loans up to Rs 50 lakh. However, the company has also clarified that it will be able to take advantage of the same customers whose CIBIL score is 700 or more.
According to LICHF, if customers of the same CIBIL score want to borrow more than Rs 50 lakh, the interest rate for them will be seven percent and above. The company's MD and CEO Siddhartha Mohanty said home loan interest rates are currently at the lowest level. This will also significantly reduce the amount of equated monthly installment (MI5).
The rates of flats worth buying are also low. Efforts are being made to increase the demand through the reduction in interest rates. Earlier in April this year, LICHF had reduced interest rates for customers with CIBIL scores of more than 800 to 7.5 percent. The company has also launched a home loan product called ' Home Senior ' for senior citizens for a period of a maximum of 30 years or 80 years of age. Government insurance companies, central and state government employees, existing and retired employees of railways, defense, banks, and other sectors can avail of this product.
It may be recalled that the CIBIL score of a customer depends on whether he has taken a loan earlier or not, and if taken, he has paid it on time or not. Some other aspects are also taken into account while examining the CIBIL score.
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