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LIC india Annouance Special Home Loan Scheme For Women

Indian mortgage lender LIC Housing Finance Ltd Monday launched a new dual-rate home loan product for women with fixed interest rate of 10% for the first two years and floating rates thereafter. The new product -- Bhagyalakshmi -- is aimed at catering to the needs of a growing number of women home seekers, LIC Housing Finance said in a statement. The floating rates applicable to this product after two years will be linked to the LHPLR (LIC Housing Prime Lending Rate) prevailing at the time of the switch, the statement said.

Besides, the floating rates will be set at 25 basis points lower than rates applicable for other floating category home loans, it added. The product will be available till March 31, 2013. The dual-rate home loan scheme or teaser loans as it was popularly referred to were last much in circulation following the economic downturn in 2008. Major financial institutions, including State Bank of India, ICICI Bank and HDFC, had come out with such schemes. However, the teaser loan schemes of the companies came under severe criticism of the Reserve Bank of India, which said that such debts make the banks' prone to high cases of default.

State Bank of India withdrew the teaser loan in May 2011, after many instances of face-off with the RBI, while ICICI Bank and HDFC had scrapped their teaser loan schemes earlier.


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