The rising interest rate regime has been a matter of concern for all borrowers now, having to face the dilemma of whether to choose a fixed rate loan or a floating one. In this situtation, LIC housing finance came up with a new home loan scheme called Freedom.
Freedom permits borrowers to change their mode of loan from fixed to floating or vice versa in a year's span of disbursal of the loan.
Under the scheme, floating interest rate for loans upto Rs 30 lakh would be 10.15% while from Rs 31 lakh to 75 lakhs, it would be 10.60-11%.
The fixed interest would be 10.75% for loans upto Rs 30 lakhs.
LIC seems to be quite happy with the performance of the scheme. Though exact number of borrowers garnered by the scheme has not been disclosed, it is said that the amount is a decent one. However, those who have chosen for a fixed rate loan should have to stay with it for 5 years time.