Mumbai, May 8, 2007: LIC Housing Finance Ltd (LICHFL), a leading player in the Indian housing finance sector, has decided to raise resources from individual depositors via an attractive Fixed Deposit scheme. This is the first time since its inception in 1989 that the housing finance company is taking the FD route for mobilizing funds.

The FD scheme has been rated FAAA/Stable by CRISIL indicating the highest degree of safety. Depositors in LICHFL’s FD scheme stand to earn a yield of 9% p.a. on a three year deposit and 9.25% p.a. interest on a five year deposit. The minimum deposit is Rs. 10,000, and thereafter in multiples of Rs. 1000/-. M/s Integrated Enterprises (India) Limited are the Fund Mobilizers to the FD scheme. The company also plans to tap the network of leading LIC agents for marketing this FD scheme. The FD scheme will be initially launched in 30 cities across the country.

“We are seeking to diversify our sources of funds and de-risk our borrowings, by tapping the retail depositors. This is the first time the company is reaching out to the retail depositors and I am sure the trust that the Company enjoys will help us to make this FD scheme a big success.” said Mr. S.K. Mitter, Director & Chief Executive, LICHFL.

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 and a representative office in the UAE at Dubai. 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 on its NCD program indicating highest safety with regard to the ability to service interest and repay capital.

For further information please visit the website www.lichousing.com or contact: