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

DBT Bureau

Pune, 23 June 2025

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, 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.”