LICHFC To Allow Borrowers To Repay Home Loan Till 75 Yrs Of Age
In a move that will allow the home finance company (HFC) to accommodate more borrowers, LIC Lousing Finance will now allow them to repay their home loans till 75 years of age. To launch the scheme, the housing finance company has tied up with India Mortgage Guarantee Corporation, a company that provides insurance against loan defaults.
Currently, LIC offers home loans at an interest rate of 8.35 per cent, with the highest repayment tenure of 30 years. While salaried borrowers can opt for the highest repayment period of 30 years, borrowers from the self-employed category are allowed to opt for the highest repayment tenure of 20 years.
"It will also help LICHFL accommodate more home-loan buyers, improve eligibility criteria, extend repayment period and ease restrictions on profile of applicants, who face rejection related to work profile, work place, credit history amongst other reasons which may be unspecified by lending institutions," LICHFL said in a statement.
With the launch of the new product, borrowers in the age group of 45-55 will find it easy to apply for a home loan.
A borrowers belonging to the salaried category, for instance, can apply for a home loan at the age of 45 and still be able to opt for a 30-year repayment arrangement. Similarly, borrowers from the self-employed category could apply for a home loan at the age of 55 years and can opt for the highest repayment tenure of 20 years.
"We will also be able to tap into the large segment of employees working in SMEs, MSMEs, small entities and self-employed individuals who have so far been out of the ambit of prospective home loan borrowers. Through this LIC HFL would support the vision of Housing for All by 2022 of the Government of India," LICHFL Managing Director and Chief Executive Officer Vinay Sah told media.
The HFC offers 85 per cent of total cost of the property for loans up to Rs 20 lakh, 80 per cent of total cost of the property for loans between Rs 20-75 lakh, and 75 per cent of total cost of the property for loans above Rs 75 lakh.