LIC Housing Finance reduces lending rates to 7.50% on new home loans

LIC Housing Finance, India’s largest housing finance company, has reduced its Rate of Interest on new home loans by 50 basis points. With this revision, interest rates on new home loan sanctions will now start from 7.50%, effective June 19, 2025, coinciding with the company’s 36th Foundation Day.

This move follows the recent repo rate cuts announced by the RBI’s Monetary Policy Committee (MPC), with LIC HFL passing on the benefit to new home loan customers to encourage home ownership and improve affordability.

Commenting on the announcement, Shri Tribhuwan Adhikari, MD & CEO, LIC Housing Finance said “As we mark our 36th Foundation Day, we remain committed to making home ownership more accessible. The rate cut is a continuation of our effort to align with RBI’s policy direction and pass on the benefits to our customers. We are confident this move will provide an added boost to housing demand, especially in the affordable and mid-income segments, where aspirations of owning a home are closely tied to interest rate dynamics.”

About LIC Housing Finance Ltd:

LIC Housing Finance Ltd. is the largest housing finance company in India. It has one of the widest networks of offices across the country and representative office in Dubai. In addition, the Company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd. LIC Housing Finance Ltd was promoted by Life Insurance Corporation in 1989, and a public issue was made in 1994. It launched its maiden GDR offering in 2004. The company enjoys the highest rating from CRISIL & CARE indicating the highest safety regarding the ability to service interest and repay principal.