LIC Scheme: LIC Housing Finance’s fixed deposit scheme is a reliable choice for investors seeking a secure investment amidst declining bank FD interest rates. This scheme guarantees returns for a specific period, such as turning a Rs 1 lakh investment into about Rs 1.34 lakh in 5 years.
Investment growth in 5 years
Investors benefit from a fixed interest rate through LIC Housing Finance’s fixed deposit scheme. By investing for 5 years, compounding allows the investment to grow significantly. For instance, a Rs 1 lakh investment can potentially increase to around Rs 1.34 lakh in 5 years, equating to an additional gain of approximately Rs 34,000.
Considerations for investors
In times of market uncertainty, many investors seek options to safeguard their capital and secure returns. LIC Housing Finance’s deposit scheme is a safe choice, particularly for those averse to high-risk investments like stocks or mutual funds. Additional benefits for senior citizens: Similar to other deposit schemes, senior citizens can enjoy added interest rate benefits. This feature can be advantageous for retirees looking for regular and secure income. It is crucial to stay informed about current interest rates as they may fluctuate. Key factors before investing: Before committing to any deposit scheme, it’s essential to understand the duration, interest rates, rules for
Meanwhile Customers with a CIBIL score of 825 or higher can benefit from the lowest interest rates on home loans up to ₹5 crore . LIC Housing Finance says these new rates are designed to reward those with strong credit profiles, making home ownership easier. These new rates apply to both new home loans and transfers of existing loans. Those who wish to transfer their home loan from elsewhere to LIC Housing Finance will also benefit from these lower interest rates.
Those with scores below 600 face greater burden
Those with a CIBIL score below 600 will have to pay higher interest on home loans between Rs 50 lakh and Rs 2 crore . The interest rate on home loans up to Rs 50 lakh is 9.55%, on loans between Rs 50 lakh and Rs 2 crore, it will be 9.65%, and on loans between Rs 2 crore and Rs 5 crore, it will be 10%.
Lower interest on lower loan
Those with a CIBIL score between 100 and 150 will also benefit from lower home loan interest rates. However, the maximum home loan amount is limited to Rs 2 crore. Those with this CIBIL score will pay interest rates between 7.65% and 7.95% on home loans up to ₹35 lakh. Interest rates on home loans between Rs 35 lakh and Rs 2 crore will range from 7.75% to 8.05%.