LIC Housing Finance has announced a reduction in its home loan interest rates, providing fresh relief to homebuyers. The lender has lowered the starting rate on new home loans to 7.15%.
The revised rates are linked to the borrower’s CIBIL score, with customers having a score of 825 or above eligible for the lowest rate on home loan amounts up to Rs 5 crore. LIC Housing Finance said the rate structure is designed to reward borrowers with a strong credit profile and make home financing more affordable, according to an ET report.
A CIBIL score is a three-digit numeric summary of a borrower’s credit history that reflects their creditworthiness and ability to repay a loan. The new rates apply to both fresh home loans and balance transfers.
LIC Housing Finance home loan interest rates
| CIBIL Score | Loan Slab | Interest Rate |
|---|
| ≥ 825 | Up to Rs 5 crore | 7.15% |
| ≥ 825 | > Rs 5 crore & up to Rs 15 crore | 7.45% |
| ------------------- | --------------------------------- | --------------- |
| 800–824 | Up to Rs 5 crore | 7.25% |
| 800–824 | > Rs 5 crore & up to Rs 15 crore | 7.55% |
| ------------------- | --------------------------------- | --------------- |
| 775–799 | Up to Rs 50 lakh | 7.35% |
| 775–799 | > Rs 50 lakh & up to Rs 2 crore | 7.45% |
| 775–799 | > Rs 2 crore & up to Rs 15 crore | 7.65% |
| ------------------- | --------------------------------- | --------------- |
| 750–774 | Up to Rs 50 lakh | 7.45% |
| 750–774 | > Rs 50 lakh & up to Rs 2 crore | 7.55% |
| 750–774 | > Rs 2 crore & up to Rs 15 crore | 7.75% |
| ------------------- | --------------------------------- | --------------- |
| 725–749 | Up to Rs 50 lakh | 7.65% |
| 725–749 | > Rs 50 lakh & up to Rs 2 crore | 7.75% |
| 725–749 | > Rs 2 crore & up to Rs 15 crore | 7.95% |
| ------------------- | --------------------------------- | --------------- |
| 700–724 | Up to Rs 50 lakh | 7.95% |
| 700–724 | > Rs 50 lakh & up to Rs 2 crore | 8.05% |
| 700–724 | > Rs 2 crore & up to Rs 15 crore | 8.25% |
| ------------------- | --------------------------------- | --------------- |
| 600–699 | Up to Rs 50 lakh | 8.75% |
| 600–699 | > Rs 50 lakh & up to Rs 2 crore | 8.85% |
| 600–699 | > Rs 2 crore & up to Rs 15 crore | 9.50% |
| ------------------- | --------------------------------- | --------------- |
| < 600 | Up to Rs 50 lakh | 9.55% |
| < 600 | > Rs 50 lakh & up to Rs 2 crore | 9.65% |
| < 600 | > Rs 2 crore & up to Rs 5 crore | 10.00% |
| ------------------- | --------------------------------- | --------------- |
| 150–200 | Up to Rs 35 lakh | 7.65% |
| 150–200 | > Rs 35 lakh & up to Rs 2 crore | 7.75% |
| ------------------- | --------------------------------- | --------------- |
| 101–149 | Up to Rs 35 lakh | 7.95% |
| 101–149 | > Rs 35 lakh & up to Rs 2 crore | 8.05% |
According to the ET report, compared with the State Bank of India (SBI), which offers home loans starting at 7.25%, LIC Housing Finance now provides a slightly lower entry-level rate for high-credit-score borrowers. SBI home loan interest rates were effective from December 15.
| 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 (P-LAP) | 8.95% – 10.50% |
| Reverse Mortgage Loan (RML) | 10.30% |
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