Unveils "New Griha Laxmi" housing loans

Mumbai, October 31, 2005: LIC Housing Finance Limited, one of the largest housing finance companies in India, has started offering home loans against the security of certain approved financial assets like bank fixed deposits, national savings certificates and life insurance policies.

Called "New Griha Laxmi", these home loans will be available up to 95% of the liquid value of the security, subject to a minimum of Rs. 50,000. There is no upper limit on the amount borrowed or on the term of the loan. Repayment of loan can be through Equated Monthly Installments (EMI), or by way of interest. This loan can be taken for purchase / construction / repairs / renovation / extension of house or flat. A one time upfront fee of only Rs. 1,000 will be charged to the customer, irrespective of the loan amount applied for. This product is also available in combination with the other products of the Company.

This product from LIC Housing Finance will offer great deal of flexibility to the home loan borrowers. It will enable them to acquire real estate assets without liquidating their financial assets. Guarantors are also not required. It will also enable the customers to acquire home loans against the security of life insurance policies which are essentially long-term assets with restricted liquidity.

Speaking on the occasion of the national launch of the product at Mumbai, LIC Housing Finance Director & Chief Executive, Mr. S.K.Mitter said "LIC Housing Finance has always sought to innovate on its product offering to suit customer needs. New Griha Laxmi combines various innovative features - flexibility of security, term, mode of payment, etc. We have also kept the upfront charges very low at a token Rs.1,000".

LIC Housing Finance General Manager (Marketing) Mr. P. K. Rath added "New Griha Laxmi will enable customers leverage their financial assets to acquire real estate assets, without having to liquidate the financial assets. Since it is against the security of financial assets, processing time and paperwork for granting this loan will be virtually nil.".

About the Company:

LIC Housing Finance Ltd is one of the largest housing finance companies in India having one of the widest marketing networks of 115 offices across the country. It was promoted by Life Insurance Corporation in 1989 and a public issue was made in 1994. It launched its maiden GDR offering in 2004. The company enjoys 'AAA' rating from CRISIL and CARE indicating highest safety with regard to the ability to service interest and repay capital.

For the half year ended 30th September 2005, the Company registered a Net Profit of Rs.58.36 crores, a growth of 28%.The mortgage loan portfolio of the Company as on 30th September 2005 stood at Rs. 13,587 crores, registering a growth of 26% over the corresponding period of the previous year.

For further information please contact:

Mr. Hemant Batra, Adfactors PR Pvt. Ltd., Tel: 022-22813565, 9820325109