Mortgage financer LIC Housing Finance (LIC HFL) announced extending its lowest home loan rate of 6.66 per-cent for home loans up to Rs 2 crore. The offer would be open to all borrowers with a CIBIL score of 700 or above. The revised rate applies to all loans sanctioned between September 22 to November 30, subject to the first disbursement being availed on or before December 21, 2021. It had previously discounted its processing fee to a maximum of Rs 10,000 or 0.25 per-cent of the entire loan amount, whichever is lower for loans up to Rs 2 crore.
In July this year, it had announced to offer home loans at an interest rate of 6.66 per cent for an amount up to Rs 50 lakh to new borrowers.
The move comes a week after HDFC decided to reduce its home loan rate to 6.70 per-cent. LIC HFL joins the league of Bank of Baroda, Kotak Mahindra and Punjab National Bank, with its decision to slash home loan rates.
The real estate market dealt a severe blow due to lockdowns meant to curb the spread of COVID-19. Ongoing projects, sight visits and investment in property suffered a setback. With large scale retrenchment at workplaces and lowered salaries, a large-scale in buying a house was out of picture. The real-estate did recover as the country underwent the unlock phase. What jolted the recovery process was the second and the more lethal second wave of the Coronavirus.
(With inputs from PTI)