LIC Housing starts 2020 home loan offer, no principal repayment till possession
According to this new scheme, homebuyers will only have to pay the principal amount till they get the possession of the housing project, or 48 months from the date of first disbursement, whichever is earlier.Updated: Jan 16, 2020 19:23 IST
LIC Housing Finance Limited (LIC HFL) has a home loan offer that is aimed at giving a boost to the real estate sector, which has been witnessing slowdown for the past few months.
LIC ‘2020 Home Loan Offer’ is being pitched as ‘Pay When You Stay’ scheme.
According to this new scheme, homebuyers will only have to pay the principal amount till they get the possession of the housing project, or 48 months from the date of first disbursement, whichever is earlier. During this period, interest has to be paid by the borrower on the amount disbursed.
The period of the offer is from January 15 to February 29, 2020. The first disbursement will commence from March 15.
The minimum loan amount is Rs 20 lakh, while the maximum is Rs 200 lakh. The rate of interest on the loan will be 8.10 per cent and above depending upon the principal amount.
LIC said loan amount beyond Rs 200 lakh can be availed under separate loan account. In this case, the EMI will start right after the first disbursement without any principal moratorium. The tenure of the loan will be up to 30 years.
Along with this, LIC is also offering relief to buyers of ready-to-move houses wherein up to six EMIs will be waived during the loan tenure.
Processing fees for loans will be applicable as under PMAY-CLSS (Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme).
LIC added that the purpose of the loan will be limited to purchase of house or flat, under construction. It does not allow any repairs/renovation, takeover loans from other institutions, among others.
LIC’s new home loan scheme comes within days after the country’s largest public-sector lender State Bank of India (SBI) unveiling a homebuyer finance guarantee scheme. SBI said it would refund the principal amount to homebuyers if a developer fails to deliver the project within a deadline.