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LIC Housing Finance has launched a new floating rate scheme under which it will offer home loans at 300-385 basis points below its prime lending rate (PLR).
Under the ‘Freedom' scheme, the housing finance company (HFC) will give home loans up Rs 30 lakh at the current PLR (13.75 per cent) less 385 basis points, that is, at 9.90 per cent. (100 basis points equals one percentage point.)
Home loans above Rs 30 lakh and less than Rs 75 lakh will be available at PLR less 340 basis points, that is, 10.35 per cent.
Loans above Rs 75 lakh and up to Rs 1.50 crore will be available at PLR less 300 basis points, that is, 10.75 per cent.
“This is a pure floating rate home loan product offering. We have also provided some embedded benefits such as allowing customers a one-time option within a year of obtaining the loan to convert to a fixed rate for the next five years, subject to terms and conditions,” said Mr V.K. Sharma, Director & Chief Executive, LIC Housing Finance.
The HFC also announced the withdrawal of the Advantage-5 product, which was launched in July 2010.
Under this scheme, home loan rates were fixed at 9.25 per cent for five years and thereafter they turned floating rate.
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