LIC Housing Finance understands that property ownership serves two vital functions: securing a comfortable home and enabling a promising investment. By financing up to 90% of your property’s cost at competitive rates starting at 8.00% p.a., LIC provides a reliable, convenient path to homeownership—equally appealing to residents and investors alike.
LIC Housing Finance Home Loan Interest Rates by Employment
Home loan interest rates are based on whether you’re salaried, self-employed, or have a professional practice.
Below is a quick look at how your employment type can influence your rate.
LIC Housing Finance Home Loan Interest Rates for Salaried Employees
| CIBIL Score | Home Loan Interest Rates |
|---|---|
| >= 800 | 8.00% p.a. – 8.25% p.a. |
| 775 – 799 | 8.10% p.a. – 8.25% p.a. |
| 750 – 774 | 8.15% p.a. – 8.30% p.a. |
| 725 – 729 | 8.65% p.a. – 8.80% p.a. |
| 700 – 724 | 8.90% p.a. – 9.05% p.a. |
| 600 – 699 | 9.55% p.a. – 9.90% p.a. |
| Less than 600 | 10.00% p.a. – 10.40% p.a. |
| 150 -200 | 8.75% p.a. |
| 199 – 149 | 9.25% p.a. |
LIC Housing Finance Home Loan Interest Rates for Self-Employed
| CIBIL Score | Home Loan Interest Rates |
|---|---|
| 800 + | 8.25% p.a. – 8.50% p.a. |
| 775 – 799 | 8.35% p.a. – 8.40% p.a. |
| 750 – 774 | 8.40% p.a. – 8.55% p.a. |
| 725 – 729 | 8.90% p.a. – 8.95% p.a. |
| 700 – 724 | 9.15% p.a. – 9.30% p.a. |
| 600 – 699 | 9.65% p.a. – 10.00% p.a. |
| Less than 600 | 10.10% p.a. – 10.50% p.a. |
Data Source: Check LIC Home Loan for all details on their official website.
LIC Housing Finance All Schemes Home Loan Interest Rates
LIC Housing Finance offers multiple home loan schemes, each with its interest rate structure and features. Here’s an overview of the current rates for various LIC Housing Finance schemes.
| Home Loan Type | Home Loan Interest Rates |
|---|---|
| Home Purchase Loan | 8.00% p.a. onwards |
| Griha Suvidha Home Loan | 8.50% p.a. onwards |
| Home Loan for Pensioners | 8.00% p.a. onwards |
| Home Renovation Loan | 8.00% p.a. onwards |
| Home Extension Loan | 8.00% p.a. onwards |
| Plot Loan | 8.20 p.a. onwards |
| Home Construction Loan | 8.00% p.a. onwards |
| Home Loan for NRI | 8.00% p.a. onwards |
| Home Loan Balance Transfer | 8.00% p.a. onwards |
| Advantage Plus | 8.00% p.a. onwards |
| Home Loan Top Up | 9.70% p.a. – 11.55% p.a. |
Read More: Interest Rate Calculator
All Schemes Offered by LIC Housing Finance: A Detailed Overview
LIC Housing Finance has a range of home loan schemes catering to diverse needs, from ready-to-move properties to under-construction projects. Read on to find the best fit for your housing requirements.
LIC Housing Finance Griha Suvidha Home Loan Interest Rates
Key highlights of Griha Suvidha loan from LIC Housing Finance:
- Designed to help more individuals purchase their own homes
- No age restrictions
- No income type restrictions
- Supported by a mortgage guarantee for extra security
- Accessible to families who may not qualify for other loans
| CIBIL Score | Home Loan Interest Rates |
|---|---|
| >= 800 | 8.00% p.a. – 8.25% p.a. |
| 775 – 799 | 8.10% p.a. – 8.25% p.a. |
| 750 – 774 | 8.15% p.a. – 8.30% p.a. |
| 725 – 729 | 8.65% p.a. – 8.80% p.a. |
| 700 – 724 | 8.90% p.a. – 9.05% p.a. |
| 600 – 699 | 9.55% p.a. – 9.90% p.a. |
| Less than 600 | 10.00% p.a. – 10.40% p.a. |
| 150 -200 | 8.75% p.a. |
| 199 – 149 | 9.25% p.a. |
LIC Housing Finance Home Loan for Pensioners Interest Rates
Key highlights of pensioner home loans from LIC Housing Finance:
- Tailored for pensioners and salaried individuals
- Flexible loan terms up to 30 years or until age 80, whichever is earlier
- Requires a joint applicant spouse, regardless of property ownership
- Children can join as co-applicants to extend loan terms and increase eligible amounts
| Home Loan Type | Interest Rate |
|---|---|
| Home Loan For Pensioners | 8.00% p.a. onwards |
LIC Housing Finance Home Renovation Loan Interest Rates
Key highlights of home renovation loans from LIC Housing Finance:
- Available for both new and existing customers
- Facilitates home renovation and improvement projects
- Features quick sanction, low EMIs, and competitive interest rates
- Simplified documentation process
| Home Loan Type | Interest Rate |
|---|---|
| Home Renovation Loan | 8.00% p.a. onwards |
LIC Housing Finance Home Loan Top-Up Interest Rates
Key highlights of top-up loans from LIC Housing Finance:
- Allows increase of existing home loan amounts
- Available to current customers and those switching to LIC Housing Finance
- Fast approval process with affordable monthly payments
- Minimal paperwork required
- Loan amount based on repayment capacity, LTV, and outstanding loan
| CIBIL Score | Interest Rates |
|---|---|
| >= 750 | 9.70% p.a. onwards |
| 750 – 700 | 10.30% p.a. onwards |
| 700 – 600 | 11.55% p.a. onwards |
LIC Housing Finance Home Extension Loan Interest Rates
Key highlights of home extension loan from LIC Housing Finance:
- Supports expansion of living spaces
- Accessible to both new and existing customers
- Offers quick sanction, low EMIs, and competitive interest rates
- Easy and straightforward documentation
| Home Loan Type | Interest Rate |
|---|---|
| Home Extension Loan | 8.00% p.a. onwards |
LIC Housing Finance Plot Loan Interest Rates
Key highlights of plot loans from LIC Housing Finance:
- Enables purchase of residential plots for building dream homes
- Competitive interest rates and a simple application process
- Types of Plot Loans:
- Plot Loan
- For purchasing residential plots from government bodies, authorities, or approved layouts
- Maximum loan amount up to 75% of property value
- Tenure up to 15 years
- Composite Loan
- For purchasing a plot and constructing a house within 3 years
- Maximum loan amount as per eligibility criteria
- Tenure up to 30 years
- Plot Loan
| Home Loan Type | Interest Rate |
|---|---|
| Plot Loan | 8.20% p.a. onwards |
LIC Housing Finance Home Construction Loan Interest Rates
Key highlights of home construction loans from LIC Housing Finance:
- Finances the construction of new homes
- Features online sanction facility and quick approval
- Offers low EMIs and competitive interest rates
- Simple documentation process
- Available to both existing and new customers
| Home Loan Type | Interest Rate |
|---|---|
| Home Construction Loan | 8.00% p.a. onwards |
LIC Housing Finance Home Loan for NRIs Interest Rates
Key highlights of NRI loans from LIC Housing Finance:
- Designed for Non-Resident Indians to purchase, construct, or renovate properties in India
- Competitive interest rates with no prepayment penalty
- Customizable loan options based on eligibility
| Home Loan Type | Interest Rate |
|---|---|
| Home Loan For NRIs | 8.00% p.a. onwards |
LIC Housing Finance Home Loan Balance Transfer Interest Rates
Key highlights of loan balance transfers to LIC Housing Finance:
- Provides hassle-free transfer of existing home loans to LIC Housing Finance
- Offers lower interest rates and affordable EMIs
- Option to avail of a top-up loan for additional financial flexibility
- Competitive rates available
| Home Loan Type | Interest Rate |
|---|---|
| Home Loan Balance Transfer | 8.00% p.a. onwards |
LIC Housing Finance Home Loan Advantage Plus Interest Rates
Key highlights of the Advantage Plus loan from LIC Housing Finance:
- Allows existing home loan borrowers to transfer loans from other banks and housing finance companies
- Benefits from lower interest rates
- Maximum loan amount up to ₹10 crore
| Home Loan Type | Interest Rate |
|---|---|
| Home Loan Advantage Plus | 8.00% p.a. onwards |
How Does Reserve Bank of India (RBI) Repo Rate Impact Home Loan Interest Rates?
The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. It acts as a benchmark for the economy, influencing liquidity and credit availability. For example, a lower repo rate reduces banks’ borrowing costs, encouraging them to lend more.
Direct Impact on Home Loan Rates
- Rate cuts reduce borrowing costs : When the RBI lowers the repo rate, banks can borrow funds at cheaper rates, potentially reducing home loan interest rates
- Example from 2025 : In February 2025, the RBI reduced the repo rate by 25 basis points to 6.25%, followed by another cut to 6%.These moves aimed to stimulate economic growth by making loans more affordable.
Transmission to Borrowers
- Partial or delayed pass-through : Banks may not immediately pass the full benefit of repo rate cuts to borrowers. For instance, after the February 2025 cut, lenders gradually adjusted home loan rates, with potential EMIs dropping by ₹500–₹1,000 per lakh
- Dependence on bank policies : Banks factor in operational costs, profit margins, and market competition when adjusting rates. For example, SBI and HDFC reduced rates to 8.25–8.5% post-February 2025 cuts, but smaller lenders might lag.
Key Outcomes for Home Loan Borrowers (2025)
- Lower EMIs : A 25-basis-point repo rate cut could reduce monthly EMIs for existing and new borrowers if banks adjust their rates
- Potential sub-8% rates : Analysts suggest home loan rates might dip below 8% in 2025 due to cumulative repo rate reductions, benefiting first-time buyers and refinancers
Inflation and Repo Rate Dynamics
- High inflation : The RBI typically raises the repo rate to curb inflation, increasing home loan costs.
- Low inflation : Falling inflation allows the RBI to cut rates, easing the burden on borrowers.
Suggested Read: When Does Your Home Become a Non Performing Asset?
How to Get Lowest and Best LIC Housing Finance Home Loan Interest Rates?
- Aim for a 750+ Credit Score to secure preferential rates.
- Select the Right LIC Housing Finance Scheme that matches personal requirements for cost efficiency.
- Leverage Special Concessions offered to government employees, women borrowers, and defense personnel.
- Use the Check-Off Facility for direct salary deductions, which may lower interest rates.
- Make a Higher Down Payment to reduce the principal and potentially get better terms.
- Watch Out for Festive Offers or promotional discounts from LIC Housing Finance.
- Keep Income Documents Updated for quicker approvals and more favorable rates.
- Maintain Steady Employment to boost financial credibility and rate eligibility.
- Build a Strong Relationship with LIC Housing Finance for possible preferential pricing.
- Always Negotiate to explore discounts on interest rates or processing fees.
Types of Home Loan Interest Rates
| Interest Rate Type | Definition | Pros | Cons |
|---|---|---|---|
| Fixed | Rate remains constant throughout a predetermined period or entire tenure. | – Predictable EMIs for budgeting- Protection against rising interest rates | – Typically, higher rates compared to floating- No benefit if market rates go down |
| Floating (Variable) | Linked to market benchmarks (e.g., Repo Rate, MCLR) and changes over time | – Often cheaper when rates fall- Can partly or fully prepay with lower penalties | – EMIs fluctuate with market conditions- Costs may rise if rates increase |
| Hybrid | Combination of fixed and floating phases. | – Stability in the initial fixed period- Potential cost savings in the variable phase | – Transition from fixed to floating can carry uncertainties |
Suggested Read: All Banks Home Loan Interest Rates 2025
Factors Affecting Bank of India Home-Loan Interest Rate
| Factor | How It Affects the Interest Rate |
|---|---|
| Credit score & repayment history | Higher credit scores & consistent repayments often lead to lower rates |
| Loan amount & tenure | Larger loan amounts or extended tenures can raise rates due to increased risk |
| Type of interest rate (fixed or floating) | Floating rates fluctuate with market changes; fixed rates remain constant but can be higher initially |
| Market & repo rate trends | Rates typically rise or fall in line with the central bank’s policy decisions |
| Employment & income stability | Steady job & robust income can fetch more favorable rates |
| Loan-to-value (LTV) ratio | A lower LTV (larger down payment) signals reduced risk, helping secure lower rates |
| Banking relationship | Good track record or existing relationship with the bank may result in preferential rates |
How to Download LIC Housing Finance Home Loan Interest Certificate?
Here’s a simple guide to download your interest certificate from LIC Housing Finance:
- Go to the official LIC HFL website
- Click on the “Customer Login” option in the top right corner.
- Under the Customer Login section, select “Home Loans.”
- Log in using your username and password.
Alternatively, you can log in with your loan application number and date of birth. - Enter the OTP sent to your registered email address and mobile number.
- Your home loan account details will appear on the screen.
- Navigate to the “Activities” tab and choose “Repay Certificate.”
- Select your loan number and financial year, then click “Submit.”
- The home loan certificate, showing your loan repayment information, will be displayed.
- You can print or download the certificate for your records.
Check Out: Loan Against Property Calculator
Will Home Loan Interest Rates Go Down in 2025?
Yes, home loan interest rates in India have already started declining in 2025, following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points (bps) on April 9, 2025 .
This reduction, combined with a similar cut in February 2025, brings the cumulative repo rate decrease to 50 bps this year, lowering the rate from 6.25% to 6% .
These cuts directly impact floating-rate home loans linked to the repo rate, which most banks use as their external benchmark.
EMI vs. Tenure Reduction: Which Saves More?
Banks typically shorten the loan tenure while keeping EMIs unchanged during rate cuts. Borrowers can opt for this or request an EMI reduction.
For example, a Rs 50 lakh loan at 8.25% (post-February cut) will now cost 8%, lowering monthly EMIs by Rs 777 (from Rs 42,603 to Rs 41,826).
- Lower EMIs : Immediate cash flow relief (e.g., saving Rs 777/month). Total interest saved over 20 years: ~Rs 1.85 lakh .
- Shorter Tenure : Retaining the original EMI shaves 10 months off the loan term, saving ~Rs 4.36 lakh in interest. Experts recommend this option for 234% higher savings compared to EMI cuts.
Suggested Read: What is Reverse Repo Rate?
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Frequently Asked Questions
LIC Housing Finance offers competitive home loan interest rates starting from 8.50% per annum.
The exact rate depends on various factors such as your credit score, loan amount, employment profile, and the specific home loan scheme you choose.
The interest rates for LIC Housing Finance Home Loans typically range from 8.50% p.a. to 10.75% p.a.
These rates vary based on the applicant’s creditworthiness, loan type, and other eligibility criteria.
Higher credit scores generally qualify for lower interest rates within this range.
Your CIBIL score plays a significant role in determining the interest rate offered by LIC Housing Finance.
Applicants with higher CIBIL scores (e.g., 800 and above) are eligible for the lowest interest rates, while those with lower scores may face higher rates.
A strong credit score demonstrates your creditworthiness, making you a less risky borrower.
LIC Housing Finance does not explicitly state a minimum credit score requirement.
However, having a CIBIL score above 700 is generally favorable and increases your chances of securing a home loan with a competitive interest rate.
Applicants with scores below this threshold may still qualify but might incur higher interest rates.
Yes, LIC Housing Finance charges a processing fee of 0.25% of the loan amount, with a minimum of ₹5,000 and a maximum cap of ₹50,000.
This fee covers the costs associated with processing your loan application.
LIC Housing Finance offers loan tenures of up to 30 years for salaried individuals and up to 25 years for self-employed individuals, depending on the applicant’s age and repayment capacity
Yes, LIC Housing Finance charges a processing fee of 0.25% of the loan amount, with a minimum of Rs. 5,000 and a maximum of Rs. 50,000.
Yes, Non-Resident Indians (NRIs) can apply for LIC Home Loans. The interest rates and terms are similar to those for resident Indians, with specific eligibility criteria applicable to NRIs.
No, LIC Housing Finance does not levy any prepayment or foreclosure charges on floating interest rate home loans.
You can apply for an LIC Home Loan by visiting the official LIC Housing Finance website or by visiting one of their branches. Additionally, applications can be made through financial portals like Credit Dharma.
The required documents include KYC documents (such as PAN Card and Aadhaar Card), income proof (like salary slips and bank statements), and property-related documents.
You can check your loan status through the LIC Housing Finance customer portal on their official website or by visiting their branches.
Yes, LIC Housing Finance provides a balance transfer facility, allowing borrowers to transfer their existing home loans from other lenders to LIC HFL at competitive interest rates.
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