LIC Housing launches home loan scheme for self-employed

LIC Housing recently said it is planning to roll out a new housing loan scheme for self-employed people wherein monthly loan repayment schedule might be tweaked to daily or quarterly.

“Other than the Equated Monthly Installments (EMIs) system (meant for service class), we are planning to have an arrangement for self employed category in such a manner that where money (housing loan installment) can be deposited (by borrower) on daily basis or quarterly basis,” LIC Housing Finance Director and Chief Executive V K Sharma told reporters here.

The LIC promoted housing finance company will target wide variety of sectors including small businessmen traders, farmers, shopkeepers etc for this new housing loan facility, he said.

“We plan to launch this loan scheme next fiscal,” he said.

Stating that EMI repaying system was more skewed towards service class, he hoped that the new loan scheme would benefit self-employed people who faced innumerable problems in availing housing loan from financial institutions.

“The credit appraisal of self employed which is another issue is currently being looked into (by LIC Housing),” he said.

Currently, the LIC Housing Finance has just 15 percent of total loan portfolio as self-employed customers.

In an effort to lend more to women, LIC Housing Finance launched woman-oriented home loan scheme ‘Bhagya Lakshmi’ on January 7 this year wherein interest rate will be 0.25 percent lesser on home loans if property is in the name of a woman.

Sharma said that loan repayment record of women had been excellent which prompted it to extend loan facility at low rate to them.

“Based on our past data, you will be surprised to know if the house is in the name of lady then delinquency or default (in home loan) is virtually zero. Then we decided why not this (low interest rate) benefit be passed on to ladies,” he said, adding that women had been better in credit appraisal.

He said the company received a tremendous response to this scheme and in less than 20 days of scheme launch, it processed 3,084 cases across the country.

LIC Housing Finance has over 8 lakh customers comprising 2 lakh women customers.

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