LIC Housing Slashes Home Loan Rates to 7.50%—Affordable Housing Gets a Major Boost

Dreaming of your own home just got more affordable! In a move that brings a sigh of relief to homebuyers, LIC Housing Finance has announced a significant reduction in its home loan interest rates. The company, celebrating its 36th Foundation Day, has cut its rates by 0.50% (50 basis points), with new loans now starting at just 7.50% interest. This development comes at a crucial time when market conditions are shifting and buyers are looking for better deals.

LIC Housing Brings Down Rates to 7.50%

Effective June 19, 2025, LIC Housing Finance has introduced the new rate structure for fresh home loan borrowers. The revised rate starts from 7.50% per annum, making it one of the most competitive lending rates in the current housing finance market.

This rate cut is aligned with the Reserve Bank of India’s (RBI) recent monetary policy moves, which have aimed at making borrowing more affordable by lowering the repo rate by 100 basis points since February 2025.

Why This Matters to You

For potential homeowners, even a 0.50% reduction in interest can translate to significant savings over the tenure of a loan. For instance:

• On a home loan of ₹50 lakh for 20 years, this rate cut can reduce the EMI by ₹1,500–₹2,000 per month, and the total interest payable by over ₹4 lakh over the loan period.

According to Triibhuwan Adhikary, Managing Director and CEO of LIC Housing Finance:

“This move on our 36th anniversary is a motivation for families striving to achieve home ownership. Our focus is on making housing more accessible for the affordable and mid-income segments, which are the backbone of India’s residential demand.”

A Boost for the Housing Market

This rate cut is not only a welcome step for individual borrowers but also a positive signal for the real estate sector. It is expected to:

• Revive housing demand, especially in the affordable and mid-range segments

• Encourage first-time buyers to make purchase decisions

• Support the government’s “Housing for All” initiatives

By aligning its offerings with RBI’s policy direction, LIC Housing is reinforcing its customer-first approach, ensuring that policy benefits are passed directly to borrowers.

LIC Housing's Nationwide Presence

LIC Housing Finance serves millions of customers through its extensive branch network across India and even has a representative office in Dubai to cater to the Indian diaspora.

Additionally, its subsidiary LIC HFL Financial Services Ltd helps in distributing products and extending the company’s reach. Established in 1989 and listed on the stock exchange since 1994, the company has a long legacy of providing reliable home financing solutions.

Key Highlights of the New Scheme

• Interest Rate: Starting from 7.50% p.a.

• Effective Date: June 19, 2025

• Eligibility: New home loan applicants

• Focus Segments: Affordable and mid-income borrowers

• EMI Benefits: Significant reduction in monthly payments

• Alignment: Follows RBI’s 100 bps rate cut in 2025

Final Thoughts: A Timely Opportunity for Homebuyers

With borrowing becoming more affordable and real estate prices stabilizing in many regions, this could be the ideal time to step into homeownership. LIC Housing Finance’s rate cut not only makes home loans more accessible but also shows its commitment to empowering middle-class India.

Whether you're a first-time buyer or planning an upgrade, LIC's latest offering can help turn your dream home into a reality—without stretching your finances.