LIC Housing Finance Ltd. is one of the largest housing finance companies in India
LIC Housing Finance provide loans for
Purchase / construction / repair and renovation of new / existing flats / houses/etc.
In 2002, LIC Housing Finance had lowered the rate of interest from 11% to 9.50% and the reduction was valid for loans stretching to a period of 20 years. The division was applicable as follows:
* Interest rate for loans stretching from 1 to 6 years became 9.50 %
* Interest rate for loans stretching from 7 to 12 years became 10 %
* Interest rate for loans stretching form 13 to 20 years became 10.50 %
In 2007, LIC Housing Finance planned to start a new scheme pertaining to reverse mortgage. This plan is prepared for the senior citizens of India over 60 years of age. The value of the property will be calculated and around 40-75% of the value of the property will be disbursed as the amount of loan.
The company is going to start a new scheme of raising funds through fixed deposits as well. With this scheme LIC Housing Finance has planned to partially fulfill the need of the Rs. 6,800 crore target set for 2007-08.The remaining amount will be gathered with the help of loans from banks and NCDs