One of India’s largest housing finance companies LIC Housing Finance has come out with a new housing loan product called Freedom.
The new product t has been launched with effect from May 4th. The new product is a floating rate housing loan scheme whose interest rate will be dependent on the LHPLR – LIC Housing Prime Lending Rate.
The rates:
The company has announced that loans which are upto 30 lakhs will be charged an interest which will be 385 basis point below the LHPLR. For loans which are in between 30 and 70 lakhs the interest rate will be 340 basis points lesser than the LHPLR and loans above 75 lakhs but lesser than 1.5 crore rupees will be charged an interest rate of 300 basis points below the LHPLR.
The company’s website indicates the current LHPLR as 13.75%.
Another feature of the product is that the customer is given the option to convert to a fixed rate loan plan for the next five years. The main condition is that the conversion can take place only within one year of the customer availing the loan. It has also been announced that Advantage 5 which was a housing loan product launched in 2010 has been withdrawn by LIC Housing Finance.