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SBI is giving special cheap loan to the employees of Life Insurance Corporation to participate in LIC IPO

SBI is providing loans to LIC employees at affordable rates.

LIC is offering a loan of up to Rs 20 lakh to employees of State Bank of India Life Insurance Corporation to invest in IPO. This IPO will be open for subscription till 9th ​​May.

LIC IPO among retail investors (LIC IPO) is seeing a great craze. The bidding for 6.9 crore shares reserved for the retail segment has been done. In this IPO, a special discount has been offered to the LIC employee. To bid these employees, the country’s largest public sector bank State Bank (State Bank of India) is offering them a special loan. State Bank is offering personal loans up to Rs 20 lakh or up to 90 per cent of the total purchase value to N employees. Whichever is less of these two, the bank will offer it. The interest rate for this special loan is 7.35 per cent, which is less than the three-year MCLR. The MCLR for three years is 7.4 per cent. A total of 114498 employees work in LIC who can take advantage of this facility.

Apart from this, the bank has also waived the processing fee. If an LIC employee takes a loan for five years, then the processing fee will be waived off. 15.8 lakh shares have been reserved in this IPO for LIC employees. There is tremendous interest in this segment as well.

Policyholders can invest up to a maximum of 6 lakhs.

According to the DRHP, retail investors can invest a maximum of Rs 2 lakh, policy holders a maximum of Rs 2 lakh and employees of Life Insurance Corporation up to Rs 2 lakh in their respective categories. If the employee of LIC is also a policy holder, then he can invest a maximum of 6 lakhs taking advantage of the retail segment. If someone wants to invest more than this, then he will have to go to the HNI category and then no discount will be available. Regarding the limit of 20 lakhs, it was said from the bank that this plan was prepared long back, due to which there was no information about any such condition.

10% reserve for LIC policy holders

LIC IPO includes an offer for sale up to Rs 20,557 crore where the government will sell its 3.5 per cent stake. A total of 22.10 crore equity shares will be offered under the issue. Apart from this, the government proposed to keep 10 per cent reserve for policyholders. However, policyholders who have an updated PAN link with their LIC policies and maintain a demat account are eligible to subscribe to the IPO.

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Employee is getting a discount of Rs 45

Policyholders will get a discount of Rs 60 per share for this IPO. The price band for policy holders will be Rs 842-889. Retail investors and employees will get a discount of Rs 45 per share. The price band for retail investors has been kept at Rs 857-904. The minimum investment for non-retail investors will be Rs 14235 with an upper limit of Rs 949 in the price band.

Source: www.tv9hindi.com

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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