LIC Housing Finance on Wednesday announced a pair of limited-period offers to push sale of under-construction and unsold residential units. The announcement comes following a similar move by SBI.
The offers will apply to purchases of units for which the potential borrower has received the occupancy certificate (OC). Under the ‘pay when you stay’ scheme, the borrower will be required to commence payment of principal only after they receive possession of the house or after 48 months from the date of first disbursement, whichever is earlier. Only interest on the disbursed amount will have to be paid during the period.
As for borrowers buying a ready-to-move house, LIC Housing will waive up to six equated monthly instalments (EMIs) during the loan tenure. The waiver will be in the form of two EMIs each at the end of the fifth, 10th and 15th years, provided the borrower is regular with repayments and makes no pre-payment for the first five years. The offers will be available till February 29 for disbursements made before March 15.
MD & CEO Siddhartha Mohanty said the offer has been designed keeping both home-loan borrowers and the real estate sector in mind. “With this move, we are confident to serve the purpose of boosting the real estate sector and bring about improvement in the sentiments of the home buyers,” he said, adding, “Our objective is to bring out products that would complement the government’s vision of ‘Housing for all by 2022’.”
Last week, SBI had announced the launch of a residential-builder finance scheme with its guarantee. It promises to return the principal amount invested by the homebuyer in case the project is not completed. Under the scheme, the bank will focus on the affordable housing segment with home prices of up to Rs 2.50 crore in 10 cities initially. So far, SBI has tied up with Sunteck Realty for three projects in Mumbai.