Under the scheme, loan amounts up to Rs 30 lakh would be offered at 9.9 per cent, loans between Rs 30-lakh-Rs 75 lakh at 10.35 per cent and loans of Rs 75-lakh-Rs 1.5-crore can be availed at 10.75 per cent.
This scheme provides an option to customers to convert to a fixed rate scheme for five years after the disbursement of the first home loan amount. However, they can exercise this option only once, within one year of availing the scheme.
Borrowers can advantage of this scheme and avail loans at reasonable rates of interest and finance their purchase of acquiring their dream home.
The company added that it has withdrawn its Advantage scheme, on concerns that it could be deemed to be a teaser loan rate scheme.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.