LIC Housing surpasses pre-Covid business levels in September

Mortgage lender LIC Housing has surpassed pre-Covid business levels in September and expects the momentum to continue with the onset of the festive season, reports The Economic Times. The lender is also targeting double digit growth for the full fiscal year. 
 
Siddhartha Mohanty, MD, LIC Housing Finance told ET that while business has seen a substantial dent in the months of March and April, the sentiment had turned and customers were no longer delaying buying decisions buoyed by low interest rates and attractive festive offers. 
 
“Mumbai we are registering good growth because of stamp duty reduction,” he said. 
 
In July, the mortgage lender had slashed home loan rates to an all-time low interest rate of 6.9 per cent for home loan borrowers. The rate of interest for home loans up to Rs 50 lakh starts from 6.9 per cent for borrowers with CIBIL score of 700 and above. For a similar score, the rate of interest is 7 per cent onwards for loan above Rs 50 lakh. 
 

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Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
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Debashis Basu
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