LIC Housing Finance today said it has launched a new home loan product christened Freedom on a floating rate basis.
Under the scheme, loans upto Rs30 lakh would be offered at 9.9%, loans between Rs30-lakh-Rs75 lakh at 10.35% and loans of Rs75-lakh-Rs1.5-crore can be availed at 10.75%.
The scheme will allow customers an option to convert to a fixed rate scheme for five years after the disbursement of the first loan amount. They can exercise this option only once, within one year of availing the scheme.
The rate would be linked to the prime lending rate, unlike the company's Advantage-5 scheme that was launched last year, with the lending rate fixed at 9.25% for five years, and after that on a floating rate basis.
The company added that it has withdrawn its Advantage scheme, on concerns that it could be deemed to be a teaser loan rate scheme.
"It was not a teaser rate scheme. It would become a dual rate scheme after five years. We had sought a clarification from the regulator on it being a teaser rate scheme. Since we did not receive any clarification, we decided that it was better to withdraw the product," LIC Housing Finance's Chief Executive Officer, V K Sharma, said.
LIC Housing Finance operates 205 offices across the country and has representative offices at Dubai and Kuwait.
article resource: www.dnaindia.com/money
Under the scheme, loans upto Rs30 lakh would be offered at 9.9%, loans between Rs30-lakh-Rs75 lakh at 10.35% and loans of Rs75-lakh-Rs1.5-crore can be availed at 10.75%.
The scheme will allow customers an option to convert to a fixed rate scheme for five years after the disbursement of the first loan amount. They can exercise this option only once, within one year of availing the scheme.
The rate would be linked to the prime lending rate, unlike the company's Advantage-5 scheme that was launched last year, with the lending rate fixed at 9.25% for five years, and after that on a floating rate basis.
The company added that it has withdrawn its Advantage scheme, on concerns that it could be deemed to be a teaser loan rate scheme.
"It was not a teaser rate scheme. It would become a dual rate scheme after five years. We had sought a clarification from the regulator on it being a teaser rate scheme. Since we did not receive any clarification, we decided that it was better to withdraw the product," LIC Housing Finance's Chief Executive Officer, V K Sharma, said.
LIC Housing Finance operates 205 offices across the country and has representative offices at Dubai and Kuwait.
article resource: www.dnaindia.com/money
No comments:
Post a Comment