LIC Housing Finance Slashes Home Loan Interest To All-Time Low Of 6.9%; But You Need This CIBIL Score
The mortgage financier LIC Housing Finance Ltd (LICHFL) has announced on July 22 that the rate of interest for housing loans has fallen down to an all-time low of 6.9% for home loans up to Rs 50 lakh, however with a condition.
Let’s learn more about this.
LICHFL Reduces Home Loan
In an attempt to create demand for buying houses in the degrading times of the Covid-19 pandemic, the LICHFL have created exciting and affordable price points and engagement scheme.
On Wednesday, the Managing Director and CEO Siddhartha Mohanty of LICHFL announced that anyone having a CIBIL score of at least 700, will be eligible to enjoy a reduced interest rate to an all-time low of 6.90% for home loans up to Rs 50 lakh.
In fact, for the desired CIBIL score as well as the minimum amount of Rs 50 lakh, the minimum rate of interest will start from 6.9%.
For the ones taking a loan of more than Rs 50 lakh, sharing the same score, the rate of interest is 7%.
According to Mohanty, “Home loan interest rates are at an all-time low for the company and thereby resulting in low EMI payment. Attractive price points and affordable EMI will aid in addressing the demand side for buying homes”.
What is CIBIL Score and How do you Find It?
CIBIL Score is a three-digit numeric summary of your credit history. It is derived from your credit history found in the CIBIL Report.
It is a numeric figure that sums up the credit history of prospective home loan buyers and helps them to get their home loan applications approved.
The CIBIL score plays a very important role in Indian financial system because it helps home loan applicants secure credit quickly.
You can get your CIBIL Score and Report here.
What is the Reason behind this Reduction?
Mohanty states that the cost of funds have softened due to the reduction in repo rates by RBI in recent months.
The current cost of fund of the company is around 5.6%.
He also stated that less than 25% of the company’s total book is under moratorium.
In fact, out of the company’s construction finance loan book of Rs 13,000 crore, about Rs 8,500-9,000 crore is under moratorium.
Even in April, LICHFL conducted a similar step and cut the home loan interest rate to 7.5% for new home buyers with a CIBIL score of 800 and above.