The teaser home loan scheme seems to be seeing a revival with more and more financial institutions joining the league in introducing such schemes. Recently leading housing finance provider, LIC Housing Finance Ltd launched a fixed cum floating interest rate home loan.
So far similar schemes have been introduced by private sector lender, ICICI Bank and HDFC Ltd.
LICHF's new product has been named, 'New Advantage 5' will offer home loans with a fixed interest rate for initial 5 years followed by floating rate after that.
The fixed rate will be 11.15% for loans upto Rs 30 lakh and 11.40% for loans from Rs 30 lakh to less than Rs 75 lakh.
In case of loans ranging from Rs 75 lakh to Rs 1.5 crore, the interest would be 11.65%.
The product will be LICHF's shelf till December 2011.