LIC Housing Finance cuts its housing loan rates to 7.4%.

LIC Housing Finance (LIC HFL) has reduced its interest rates with immediate impact for individual home loan borrowers, the firm said in a media release. For any amount of loan, the interest rate for new customers with CIBIL score of 800 or more is 7.5%. If the customer assigns new/existing single premium term insurance policy with the guaranteed amount equivalent to the loan amount to LIC HFL, an additional reduction of 10 bps i.e. 7.40% would be given.

Siddhartha Mohanty, the company’s Managing Director & CEO said, “We want to restore trust to the sector and will do our best to help the real estate industry and the economy.”

The interest rate is linked with creditworthiness, as reflected in the borrowers’ CIBIL scores.

The company had stated in February 2020 that they listed 14 projects to be referred to the Alternative Investment Fund (AIF), which was set up by the government to fund the last mile.

Life Insurance Corporation had recently made it clear that no plan was made to combine its subsidiary LIC Housing with any other company.