Amid growing demand for larger and more affordable spaces, LIC Housing Finance (LIC HFL) has extended its lowest mortgage rate of 6.66% for home loans up to Rs 2 crore. Earlier in July this year, LIC HFL announced that it was offering home loans at an interest rate of 6.66% up to Rs 50 lakh to new borrowers. According to LIC HFL, the new offer will be available to all borrowers with a CIBIL score of 700 and above, regardless of their profession, namely employee or professional / self-employed.
The LIC HFL mortgage at the rate of 6.66% will be available for sanctioned loans from September 22 to November 30, 2021. However, this special mortgage loan offer will only apply if the first disbursement is made no later than the 31st. December 2021.
Commenting on the extended offer, LIC HFL Managing Director and CEO Y Viswanatha Gowd said that by segmenting borrowers with a CIBIL score of 700 and above for special rates regardless of job category, LIC HFL aims to cater to a larger base of borrowers.
LIC HFL has also reduced its processing fee to a maximum of Rs 10,000 or 0.25% of the loan amount, whichever is lower for loans up to Rs 2 crore.
The lowest rate of 6.66% will be available for all home loan products, including the Griha Varishtha Special Scheme for borrowers covered by a defined benefit pension plan that includes a six IME waiver, said the local financial.
LIC HFL also introduced the HomY app which makes it easier to apply for home loans digitally and get approvals online.
What SBI, HDFC, Bank of Baroda and Kotak offer
Previously, housing finance company HDFC announced home loans starting at 6.70% per annum from September 20, 2021. This offer will be valid until October 31, 2021.
The main public sector lender, SBI, also offers home loans linked to the credit score at just 6.70%.
Kotak Mahindra Bank Ltd also recently cut its mortgage interest rates by 15 basis points, from 6.65% to 6.50% per annum.
Bank of Baroda mortgage rates start at 6.75%.