Big relief for homebuyers! LIC Housing Finance cuts home loan interest rates – check details

TOI Business Desk / TIMESOFINDIA.COM / Dec 24, 2025, 13:38 IST

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Big relief for homebuyers! LIC Housing Finance cuts home loan interest rates – check details

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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%

Source- LIC Housing Finance website 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%

Source: ET

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The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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