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LIC HFL Home Loan Rate: LIC Housing Finance cuts home loans to 7.4% for select borrowers | India Business News

MUMBAI: LIC Housing Finance, the second-largest mortgage company, has said that it will offer home loans at 7.4% to those who have a good credit score and have a term life insurance policy large enough to cover their loan.
“Rate of interest for new customers having a CIBIL score of 800 or more is 7.5% for any amount of loan. An additional reduction of 10 basis points (7.40%) will be offered if the customer assigns their single-premium term assurance policy with the sum assured equal to the loan amount to LIC HFL,” the company said in a statement.
The rate of interest is linked to the creditworthiness as reflected in CIBIL scores of the borrowers. A company official said that the term insurance policy could be from any insurance company and not necessarily the Life Insurance Corporation. The only condition was that the amount should be enough to cover the size of the loan and the premium for the loan period should be paid upfront.
“We want to bring confidence back to the sector and will do our part in supporting the real estate industry and the economy. The present crisis has also forced businesses to adapt to factors like social distancing and prepare for a new normal by leveraging technology,” said Siddhartha Mohanty, MD & CEO of LIC Housing Finance
The company’s branches have started operations in some areas while in most other places staff are working from home.
According to the official what has helped was the company HomY app. “This which has equipped marketing teams to onboard customers digitally and provide faster turn-around time in loan approvals as well as servicing without visiting our offices, “he said.

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