LIC Housing Finance is going to launch a new home loan product with a low-cost term insurance. It plans to price this term cover competitively, in order to differentiate its home loan from rivals.
LIC Housing Finance MD & CEO Vinay Sah said that the term insurance would also provide additional security to the company. In addition to the bundled product, the LIC Housing Finance will also offer regular home loan borrowers — including existing borrowers — the option to participate in a group protection policy. “The premium will depend on the age of the borrower, but there will be a uniform table of rates across ages for all customers,” said Sah.
The difference between the group cover and the bundled product is that in the latter there would not be any separate premium collected. According to Sah, the company aims to grow its loans by differentiating its products and by increasing market reach. “Our home loans start at 8.35% in line with the best rates,” he said.