Mumbai: LIC Housing Finance on Thursday slashed interest rates for new housing loan customers, intensifying the war for cornering a major pie of the now reviving home loan market.
It has introduced a new scheme, a three-year ‘Fix-o-Floaty’ scheme, which offers flexibility to customers as well as protection against the volatilities of interest rate movement.
Under the scheme, borrowers will pay a fixed interest rate of 8.9% for loans up to Rs75 lakh and 9.5% for loans above of Rs75 lakh for a period of three years.
Thereafter, a floating rate prevailing at the end of three years will have to be paid, the release said.
This scheme for new customers comes into effect from today.
At any time during the three-year initial period, the customer has a choice of shifting to the floating interest rate without any additional charges, the release said.
For home loan borrowers preferring floating rates ab-initio, the special offer rates for new customers for loans up to Rs75 lakh will be 8.50%, against 8.75% to 9.75%. For loans above Rs75 lakh, the rates will be 9.50% as against 10.25% earlier.