Branded as the 'Pay When You Stay' scheme, under this the homebuyer has to make payment of principal on the home loans only on getting the possession of the house or after 48 months from first disbursement, whichever is earlier.
LIC Housing Finance Limited (LICHFL) launched its "2020 Home Loan Offer" on January 15.
Aimed at giving a push to the embattled real estate sector, the housing finance company has come out with offers in its home loan product segments that cover the purchase of 'House Under Construction' and 'Ready to Move' properties where the occupancy certificate (OC) has been received by the homebuyer.
Branded as the 'Pay When You Stay' scheme, under this the homebuyer has to make payment of principal on the home loans only on getting possession of the house or after 48 months from first disbursement, whichever is earlier. During this period, only the interest on the disbursed amount needs to be paid by the customer.
Siddhartha Mohanty, Managing Director and CEO of LICHFL, said, "We have included both the segments of real estate viz. under construction projects and ready to move house. "Pay When You Stay" would ease the monthly burden of EMI and rent for the borrower as there is a breather for principal payment till maximum up to 48 months. Waiver of up to 6 EMIs is an upfront benefit for borrowers opting for ready to move house. Our objective is to bring out products that would complement Government’s vision of ‘Housing for all by 2022’ and such offers will only help the sector in realizing the vision."
In addition, the company is offering a breather for buyers of ready-to-move houses wherein up to six EMIs will be waived during the loan tenure. Two EMIs each at the end of fifth, 10th and 15th years will be waived under this offer, on the condition that the borrower is regular in making repayments and makes no pre-payment for the first five years.
The offer, however, is available only for a limited period till February 29 and the disbursement has to take place before March 15.
Earlier in January, the country's largest lender - the State Bank of India (SBI) - also came up with an offer for homebuyers. The 'Residential Builder Finance with Buyer Guarantee' (RBBG) scheme is essentially a financial safeguard for homebuyers. Under this, the lender issues a guarantee for completion of projects to SBI's home loan customers.
The bank, under RBBG, has committed to refund the principal loan amount if the developer fails to complete the project. Thus, buyers will now be able to secure their investment in the ongoing home projects financed by the bank itself.Also Read | SBI’s new home finance scheme: Should you go for it?Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.