A recent press report said that Mortgage Company LIC Housing Finance has joined the teaser home loan group by introducing ‘New Advantage 5’, under which the interest rate for home loans would remain fixed for the first five years.
Reports said that LIC Housing Finance has planned to offer the loans at fixed interest rates for the first five years and thereafter at floating rates. The floating rates are to be linked to the Prime Lending Rate prevailing at the time of the switch.
Reports also said that the scheme will be available till December 31, with a condition that the first disbursement should be availed by the customer on or before January 15, 2012. LIC Housing Finance is the third lender to offer such a scheme. Earlier HDFC and ICICI had launched such a product in the market.
According to reports LIC Housing Finance has said that loans amounting to up to Rs 30 lakh will have a fixed interest rate of 11.15 per cent for a five-year period. The loans ranging from Rs. 30 lakh to Rs. 75 lakh will have fixed interest rates of 11.40 per cent and Rs 75-150 lakh loans will attract 11.65 per cent for a five-year period.