LIC Housing Finance today said it has launched a new home loan product christened Freedom on a floating rate basis.

Under the scheme, loans up to Rs 30 lakh would be offered at 9.9 per cent, loans between Rs 30-75 lakh at 10.35 per cent and loans of Rs 75-lakh-Rs 1.5-crore can be availed at 10.75 per cent, LIC Housing said in statement issued here.

The scheme will allow customers an option to convert to a fixed rate scheme for five years after the disbursement of the first loan amount. They can exercise this option only once, within one year of availing the scheme, it said.

The rate would be linked to the prime lending rate, unlike the company's Advantage-5 scheme that was launched last year, with the lending rate fixed at 9.25 per cent for five years, and after that on a floating rate basis.

The company added it has withdrawn its Advantage scheme, on concerns that it could be deemed to be a teaser loan rate scheme.

"It (Advantage) was not a teaser rate scheme. It would become a dual rate scheme after five years. We had sought a clarification from the regulator on it being a teaser rate scheme.

Since we did not receive any clarification, we decided that it was better to withdraw the product," LIC Housing Finance Chief Executive Officer V K Sharma said in the statement.

LIC Housing Finance operates 205 offices across the country and has representative offices at Dubai and Kuwait.