LIC Home Loan Interest Rates

LIC Home Loan interest Rate

Life Insurance Corporation, commonly known as LIC, offers a range of attractive home loan schemes to help individuals realize their dream of owning a home. LIC Home Loan interest rates are competitive and vary depending on factors such as the loan amount, tenure, and the applicant’s CIBIL score.

LIC Home Loan Interest Rates – An Overview

Here’s a summary of the key details regarding LIC housing Loan interest rates:

Interest RateStarting from 8.50% onwards
Loan AmountRs. 1 lakh to Rs. 15 crore
Loan TenureUp to 30 years (for salaried) Up to 25 years (for self-employed)
Processing Fees0% – 0.50%
Foreclosure ChargesNil

LIC Housing Finance offers various schemes, each tailored to different needs. Let’s explore these schemes and their respective interest rates.

LIC Home Loan Interest Rates 2023

Here are the different schemes offered by LIC Housing Finance and their associated interest rates:

Types of LIC Home Loans

Home Loan TypeFor SalariedFor Self-employed
LIC Griha Suvidha Home Loan8.85% onwards8.85% onwards
LIC Home Loan for Pensioners8.50% onwards8.60% onwards
LIC Home Renovation Loan8.50% onwards8.60% onwards
LIC Home Loan Top-up9.70% – 11.55%NA
LIC Home Extension Loan8.50% onwards8.60% onwards
LIC Home Loan for NRI8.50% onwards8.60% onwards
LIC Plot Loan8.70% onwards8.80% onwards
LIC Advantage Plus8.50% onwards8.60% onwards

Types of LIC Home Loan Schemes

Now, let’s delve into the specifics of these home loan schemes:

LIC Griha Suvidha Home Loan: This scheme is available to individuals who receive a portion of their income in cash or those who require longer loan terms, especially as they approach retirement. Self-employed individuals seeking extended loan tenures can also benefit from this program.

Maximum Tenure: 30 years

Processing Fees:

0.25% of the loan amount + GST (for loans up to 1 crore)

Rs. 20,000 + GST (for loans greater than 1 crore and up to 2 crores)

Rs. 25,000 + GST (for loans greater than 2 crores and up to 5 crores)

Rs. 50,000 + GST (for loans greater than 5 crores and up to 15 crores)

LIC Home Loan for Pensioners: This scheme caters to state government employees and individuals drawing pensions under Defined Benefit Pension Schemes (DBPS) who are up to 65 years of age. It offers benefits such as EMI exemptions for retirees, government employees, and PSU personnel eligible for the Defined Benefit Pension Scheme.

Starting Interest Rate: 8.50% onwards

LIC Home Renovation Loan: This loan can be availed for construction purposes or renovations. The interest rate starts from 8.50% per annum, with a maximum repayment period of 30 years for salaried employees and 25 years for self-employed individuals.

Some other home loan schemes,

LIC Home Loan Top-up: This option allows borrowers to secure an additional loan on an existing LIC Home Loan, applicable to both new and current borrowers. New borrowers can access a top-up when transferring their existing home loan to LIC Housing Finance. The interest rates for top-up loans start from 9.70%.

LIC Home Extension Loan: Offering interest rates starting from 8.50% per annum, this scheme allows borrowers to extend their homes. The maximum tenure allowed for this scheme is 30 years.

LIC Home Loan for NRI: This scheme is tailored for Non-Resident Indians (NRIs) looking to construct or purchase a home in India. NRIs can also transfer their existing home loan balance from other banks or NBFCs to LIC Housing Finance under this scheme.

LIC Plot Loan: This type of loan is designed for the purchase of residential plots from government bodies, development authorities, or approved entities. The maximum loan amount that can be availed is 75% of the property value, with a maximum loan term of 15 years.

LIC Advantage Plus: This scheme enables customers to switch their existing loan to LIC Housing Finance, offering several benefits such as lower interest rates, EMI waivers, and zero foreclosure charges.

LIC Housing Finance Interest Rates Based on CIBIL Score

Your CIBIL score plays a pivotal role in determining the interest rates on LIC Home Loans. Maintaining a good credit score can help you secure a lower interest rate on your loan amount. Below is a table illustrating the home loan interest rates offered by LIC Housing Finance Limited based on CIBIL scores:

LIC Home Loan Interest Rates for Salaried Individuals (Based on CIBIL Score)

CIBIL ScoreLoan Amount Up to 2 croresLoan Amount > 2 crores < 15 crores
>= 7508.50%8.70%
600-6999.55% – 9.75%9.90%
< 60010.00% – 10.20%10.40%
<= 2009.30% – 9.50%NA

Applying for LIC Home Loans

Here’s a step-by-step guide on how to apply for LIC Home Loans:

Offline Application Process

  1. Visit LIC Branch: Start by visiting the nearest LIC branch in your locality. At the branch, you can consult with a bank representative who will guide you through the LIC Home Loan application process.
  2. Eligibility Check: The bank representative will help you check your eligibility for various LIC Housing Finance schemes. They will assess your financial profile, income, and other relevant factors to determine the most suitable loan option for you.
  3. Application Form: Once you’ve identified the appropriate LIC Housing Finance scheme, you will need to fill out the application form. The bank representative will provide you with the necessary forms and assist you in completing them.
  4. Document Submission: Gather all the required documents, as mentioned by the bank, for background and income verification. Ensure that you submit these documents along with your application form. The bank will typically request KYC documents, proof of address, proof of income, and property-related documents.
  5. Application Processing: The bank will initiate the processing of your application. They will review your application, conduct credit checks, and assess your eligibility based on the provided documents.
  6. Loan Sanction: If your application meets the necessary criteria and is approved, the bank will sanction the loan amount. You will receive an official communication regarding the approval, loan amount, and other terms and conditions.
  7. Disbursement: Once the loan is sanctioned, the bank will disburse the loan amount directly to the seller or builder of the property, depending on your agreement. Make sure to keep track of the disbursement process and property-related transactions.

Online Application Process

  1. Visit LIC Housing Finance Website: Go to the official website of LIC Housing Finance at
  2. Check Eligibility: Explore the various LIC Housing Finance schemes available on the website and check the eligibility criteria for each one. This will help you determine which scheme aligns best with your needs.
  3. Online Application: Fill out the online application form available on the website. Provide accurate details about your personal information, income, and the loan amount you require.
  4. Document Submission: After submitting the online application, you will need to upload the necessary documents as per the bank’s requirements. These documents typically include KYC documents, proof of address, proof of income, and property-related documents.
  5. Application Review: LIC Housing Finance will review your online application and the uploaded documents. They will assess your eligibility based on the information provided.
  6. Loan Approval: If your application is approved, you will receive confirmation of the loan approval, including the sanctioned amount and terms and conditions.
  7. Property Verification: The bank conducts a verification of the property. This is to ensure that the property is eligible for financing.
  8. Loan Disbursement: Once bank successfully verifies and completes the formalities, bank will disburse the loan amount as per the agreement.

Documents Required for LIC Home Loan Application

To support your Home Loan application, you’ll need to provide specific documents. Here’s a list of commonly required documents:

KYC Documents:

  • PAN Card: A copy of your Permanent Account Number (PAN) card.
  • Aadhar Card: Proof of identity and address through your Aadhar card.
  • Address Proof: Documents like utility bills, passport, or voter ID that establish your current address.
  • Passport (for NRI customers): In case you’re an NRI applying for a home loan.

Documents Accepted as Property Papers:

  • Allotment Letter of Builder/Society: If you’re purchasing a flat, you may need the allotment letter from the builder or society.
  • Proof of Ownership of Property: Documents demonstrating your ownership of the property.
  • Latest Tax-Paid Receipts: Receipts indicating the latest tax payments related to the property.

Documents Required for Income Verification:

  • Bank Account Statements: Bank statements for the last 6 to 12 months to verify your financial transactions.
  • Salary Slips and Form 16: If you’re a salaried employee.
  • Income Tax Returns: Income tax returns for the past 3 years, financial statements.

These documents are essential for the bank to assess your eligibility, verify your identity, and evaluate your repayment capacity.

Also check home loans from banks

LenderHome Loan Interest Rates (Above 75 lakhs)Home Loan Interest Rates (Above 30 lakhs to 75 lakhs)Home Loan Interest Rates (Up to 30 lakhs)
State Bank of India8.50% – 10.05%8.50% – 10.05%8.50% – 10.15%
HDFC Bank Limited8.40% onwards8.40% onwards8.40% onwards


What is the maximum tenure LIC offers home loan for

The maximum tenure for the home loan is 20-30 years (but the tenure of the loan can also change based on the scheme.)

Are LIC housing Finance interest rates fixed or floating?

Offers both fixed and floating interest rate options for home loans. With a fixed rate, the interest remains constant throughout the loan tenure, while with a floating rate, it fluctuates with the market condition.

How is Interest Rate Determined for LIC Home Loan

LIC determines the interest rate based on factors like the loan amount, loan tenure, CIBIL Score, and the type of interest rate (fixed or floating) chosen by the borrower.

How can I calculate the EMI for LIC Home Loan?

You can calculate the EMI for using any online EMI Calculator

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