With the fear of fall in economy and dampening of growth and employment LIC Housing Finance is mulling reduction of interest rates in the coming quarter. The company is also planning to raise around Rs 28000 crore to support its loan disbursement, during the current financial year.
V. K. Sharma, Managing Director and Chief Executive Officer of LIC Housing Finance, while inaugurating the property fair at Chennai recently said interest rates definitely needs to be stable, if not fall.
The housing market in major cities, such as Mumbai and Delhi, are burdened with unsold stocks because of high prices, interest rates and the depreciating rupee. However, attractive loan packages and competitive interest rates ensure LIC Housing sustains a double-digit growth, he said.
The company has offered a range of fixed rates, which are attracting the risk-averse customers under the current market conditions. With rates ruling at 10-11 per cent now, it is the time to opt for fixed rates, as interest rates are unlikely to fall significantly even as the risk of an upswing prevails, he felt.
