Mortgage lender LIC Housing Finance has cut its home loan interest rate to an all-time low of 6.90 percent for all new borrowers.
The interest rate on home loans up to Rs 50 lakh will start from 6.90 percent for borrowers who have a Cibil score of 700 or more. However, if the home loan amount goes up, the interest rate will also increase marginally above 7 percent.
The mortgage lender’s MD and CEO Siddhartha Mohanty said, “Home loan interest rates are at an all-time low for the company thereby resulting in low EMI payment, attractive price points, and affordable EMI will aid in addressing the demand side for buying homes.”
Mohanty went on to add that there is no lack of liquidity at the moment and the real problem is consumption demand. He said that the new home loan offer may stimulate demand.
According to a report, the mortgage lender had earlier cut its home loan interest rate to 7.5 percent for lenders with Cibil score above 800 or more.
Mohanty went on to add that the lender’s total loans under moratorium are below 25 percent. He also mentioned that 60 percent of the construction finance loan book was under moratorium.
This means that over Rs 8,000 crore of the lenders total finance loan book of Rs 13,000 crore is under moratorium.
Also read: RBI may extend loan moratorium period for stressed sectors: Report
