Good news for home buyers! LIC Housing Finance has reduced home loan interest rates. Check out the new interest rate chart..
This is good news for people planning to buy a house. LIC Housing Finance has announced a reduction in home loan interest rates. The company has set the starting rate for new home loans at 7.15%. Importantly, this rate will be directly linked to your CIBIL score. This means the better your credit score, the cheaper the loan.
LIC Housing Finance's New Home Loan Interest Rates
LIC Housing Finance has set interest rates based on different CIBIL scores and loan amounts. Customers with a CIBIL score of 825 or higher will benefit from the lowest interest rate. LIC Housing Finance Home Loan Interest Rates (Latest)
CIBIL Score Loan Amount Slab Interest Rate (% p.a.)
CIBIL ≥ 825 Up to ₹5 Crore 7.15%
₹5 Crore to ₹15 Crore 7.45%
CIBIL 800 – 824 Up to ₹5 Crore 7.25%
₹5 Crore to ₹15 Crore 7.55%
CIBIL 775 – 799 Up to ₹50 Lakh 7.35%
₹50 Lakh to ₹2 Crore 7.45%
₹2 Crore to ₹15 Crore 7.65%
CIBIL 750 – 774 Up to ₹50 Lakh 7.45%
₹50 Lakh to ₹2 Crore 7.55%
₹2 Crore to ₹15 Crore 7.75%
CIBIL 725 – 749 Up to ₹50 Lakh 7.65%
₹50 Lakh to ₹2 Crore 7.75%
₹2 Crore to ₹15 Crore 7.95%
CIBIL 700 – 724 Up to ₹50 Lakh 7.95%
₹50 Lakh to ₹2 Crore 8.05%
₹2 Crore to ₹15 Crore 8.25%
CIBIL 600 – 699 Up to ₹50 Lakh 8.75%
₹50 Lakh to ₹2 Crore 8.85%
₹2 Crore to ₹15 Crore 9.50%
CIBIL < 600 Up to ₹50 Lakh 9.55%
₹50 Lakh to ₹2 Crore 9.65%
₹2 Crore to ₹5 Crore 10.00%
150 ≤ CIBIL ≤ 200* Up to ₹35 Lakh 7.65%
₹35 Lakh to ₹2 Crore 7.75%
101 ≤ CIBIL < 150* Up to ₹35 lakh: 7.95%
₹35 lakh to ₹2 crore: 8.05%
How much cheaper is LIC Housing Finance's loan compared to SBI's?
If we compare LIC Housing Finance's interest rates with SBI home loans, LIC Housing Finance appears slightly cheaper for customers with high CIBIL scores.
SBI Home Loan Interest Rates (Effective from December 15, 2025)
Loan Type Interest Rate
Home Loan (TL) 7.25% – 8.45%
Home Loan Maxgain (OD) 7.50% – 8.70%
Top Up Loan 7.75% – 10.50%
Top Up (OD) Loan 8.00% – 9.20%
Loan Against Property 8.95% – 10.50%
Reverse Mortgage Loan 10.30%
LIC Housing Finance's starting rate of 7.15% is lower than SBI's 7.25%. This means that for those with a strong credit score and who want a simple home loan, LIC Housing Finance could be more beneficial.
What is a CIBIL score?
A CIBIL score is a 3-digit number that reflects your credit history. It shows how responsibly you have made payments on previous loans and credit cards. The higher the CIBIL score, the greater the likelihood that banks will offer you a loan at a lower interest rate.
Why is this decision important for homebuyers?
Even a small reduction in interest rates has a significant impact on EMIs in the long run, especially for 20-30-year home loans. Therefore, this decision can prove beneficial for new homebuyers as well as those considering a balance transfer.
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