LIC Housing Finance competes for home loan pie with lower interest rates
LIC Housing Finance (LICHF) reduced its minimum mortgage rate from 6.90% to 6.66%, signaling its intention to join the battle for market share on the basis of low rates.
This is a limited-term offer applicable to loans sanctioned until August 31, 2021, provided that the first disbursement takes place before September 30, 2021. This interest rate is available for terms up to 30 years. It will apply to loan amounts up to Rs 50 lakh offered to employees.
LICHF’s rates, however, are not the lowest in the market. The lowest rate of 6.65 percent is offered by Punjab and Sind Bank and Kotak Mahindra Bank.
Borrowers should note that these low loan rates are not available to everyone. Usually, they are only given to customers with a high credit score of 800 and above. So, check your credit score before you apply. If it is lower, your application may be refused or the loan may be approved at a higher rate.
Salaried people generally enjoy a better rate than self-employed professionals and businessmen. If you are asking for a higher loan-to-value ratio (LTV), then also you may have to pay a higher rate. Customers who do not purchase an insurance policy from the lender may also not get the best rates.