The single slab of LIC Home Finance will have two sets of interest rates, depending on the term of the loan. The interest rate for a term of 15 years is 13.25 per cent and a 16-year loan is pegged at 14 per cent. DHFL pared its rates by 25-200 basis points from March 9 and will charge 12 per cent for loans up to Rs 25,000, 13.25 per cent for loans between Rs 25,001 and Rs 100,000 and 16 per cent for loans between Rs 1 million and Rs 2.5 million. To encourage customers further, DHFL has waived off prepayment charges in all the loan categories. Maharishi Housing Development Finance Corporation has also revised its interest rates.
Funds are also available for purchase of a new dwelling and construction of new houses.