LIC Housing Finance cuts lending rates to 7.5% for new homebuyers with at least 800 CIBIL score
Mortgage financer LIC Housing Finance Ltd (LICHFL) on Thursday announced to reduce its lending rates to 7.5 percent for new homebuyers having a CIBIL score of 800 and above
Mumbai: Mortgage financer LIC Housing Finance Ltd (LICHFL) on Thursday announced to reduce its lending rates to 7.5 percent for new homebuyers having a CIBIL score of 800 and above.
"The RBI has taken a number of steps to provide enough liquidity into the system. We are also getting cheaper cost of funds and we want to pass on that benefit to customers. This will also help in bringing back consumers' confidence back to the sector," LICHFL Managing Director and CEO Siddhartha Mohanty said.
The home financier will give additional 10 basis points benefit to new homebuyers and will offer home loan at 7.4 percent to customers who are linking their existing or new single term insurance policy to the loan availed from it.
"In case of the unfortunate death of a borrower, the term policy will take care of the loan," Mohanty said.
The reduction in home loans will also be available for new home buyers having a CIBIL score lower than 800 but at a higher interest rate.
"The rate of interest is linked to the creditworthiness as reflected in CIBIL scores of the borrowers," the company said.
Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else usually purchased on credit. Mortgage rates have already hit their highest level since 2008, creating pain for the housing industry
Interest rates are influenced by a number of variables, most notably the monetary policy of the Reserve Bank of India