New Delhi40 minutes ago
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LIC Housing Finance (LIC HFL) has decided to reduce the interest rates on its home loans, giving a big relief to home buyers. The company has reduced the initial interest rate for new home loans to 7.15%.
This new rate will be available to those customers who have a good credit profile i.e. CIBIL score. The special thing is that this rate of LIC has become lower than the starting rates of the country’s largest government bank SBI.
Rates will be decided on the basis of CIBIL score
- According to LIC-HFL, the new structure of interest rates is completely based on the CIBIL score of the borrower.
- CIBIL Score is a three-digit number that reflects your loan history and your ability to repay it.
- The aim of the company is to benefit those customers who always keep their credit record in good condition.
Cheapest loan for those with score more than 825
- Customers whose CIBIL score is 825 or more will be eligible to avail the loan at the lowest interest rate of 7.15%. This rate will be applicable on home loans up to Rs 5 crore.
- The company has clarified that this step has been taken to make home financing more affordable. This will reduce the monthly EMI of those who are applying for large loan amounts.
LIC loan becomes cheaper than SBI
According to an ET report, this new rate of LIC Housing Finance is slightly lower than that of State Bank of India (SBI). SBI is currently offering home loans at an introductory rate of 7.25%, which is effective from December 15.
After the new rates of LIC, competition has increased in the market, the direct benefit of which will be given to those customers whose credit score is very good.
Facility on both new loan and balance transfer
This deduction is not only for new loan takers. LIC Housing Finance has said that customers who want to transfer (balance transfer) their loans from other banks or housing companies to LIC can also take advantage of these new rates. With this, old customers will also have the opportunity to reduce their EMI.
Real estate will gain momentum due to cheaper home loans
Market experts believe that the rate cut by LIC may increase the demand for houses. Often even a small reduction in interest rates leads to savings of lakhs of rupees on long term loans.
In the coming time, other private and government banks may also change their interest rates to attract customers.
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