LIC Housing Finance Cuts Home Loan Interest Rates, Calculate Your New EMI Starting From This Date

Life Insurance Corporation (LIC) Housing Finance has announced a reduction in its prime lending rate by 25 basis points. This decision comes in response to the Reserve Bank of India (RBI) cutting the repo rate for the second time. LIC Housing Finance has adjusted its lending rates to align with the broader trend of easing interest rates, which could make home loans and other credit offerings more affordable for borrowers.

LIC Housing Finance Revised Interest Rates

LIC Housing Finance will start offering home loans at a lower interest rate of 8% from April 28, 2025. This change is effective for both the new and existing customers. It will reduce their monthly for home loan installments.

Managing Director (MD) and Chief Executive Officer (CEO) of LIC Housing Finance Limited Tribhuwan Adhikari announced, "The interest rate cuts are in line with the RBI's decisions and current market scenario. We believe this move will boost consumer sentiments and stimulate housing demand."

LIC Housing Finance's updated home loan rates will be available for salaried individuals, self-employed professionals, pensioners, and Non-Resident Indians (NRIs).

Current Interest Rates

At present, the rates start as low as 8.50%, depending on the loan type and borrower. The Griha Suvidha Home Loan starts at 8.85% for both salaried and self-employed borrowers. The Home Loan for Pensioners starts at 8.50% for salaried people and 8.60% for self-employed applicants.

Other loans, like the LIC Home Renovation Loan and Home Extension Loan, also begin at 8.50% for salaried borrowers and 8.60% for the self-employed. For those looking for extra funds, the Top-up Loan is available for salaried individuals with rates between 9.70% and 11.55%. The Plot Loan starts at 8.70% for salaried and 8.80% for self-employed borrowers. The Advantage Plus Loan starts at 8.50% and 8.60%, respectively.

How LIC's Interest Rate Cut Will Impact Your Home Loan? Calculate EMI Here

For example, a borrower who has taken a home loan of Rs 30 lakh from LIC Housing Finance for a period of 20 years at a floating interest rate would see a noticeable change in their monthly Equated Monthly Installment (EMI). LIC Housing Finance reduced its home loan rates by 25 basis points. That means the EMI, which was earlier Rs 28,950.65 at a 10% interest rate, will now drop to Rs 28,455.51 at the new rate of 9.75%. This brings a monthly saving of nearly Rs 495.

The RBI has brought the repo rate down to 6%, aiming to boost liquidity and encourage lending in the market. With these revised rates, LIC Housing Finance aims to provide more competitive and accessible financing options for a wide range of home buyers.