DEVELOPMENT & ADVANCES OF LIC HOUSING FINANCE LTD.

Abstract

LIC Housing Finance Ltd. is a subsidiary of LIC which was created with an objective of providing Long Term loans for the purchase or construction of houses or flats. It has its H.Q. in MUMBAI. The Authorized Capital of the Company is Rs.1500 Million (Rs.150 crores). It’s paid -up capital is Rs. 1,009.9 Million. In its incorporation year 1989 company started various schemes like Griha Prakash, Griha Tara, Griha Shobha and Griha Lakshmi. It had created about 9, 40,000 satisfied customers in the year 2008. LICHFL launched a ‘New Fixed 10’ scheme in which it charged a fixed interest rate of 11.50% for 10 years. It had set a target of generating total business of Rs. 33,000 crore in the year 2014. LIC held 45% share in the asset management company while LICHFL owned 20%. The cost of borrowings reduced to 8.5% till June 30, 2017.