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Key Points

LIC Housing Finance has slashed home loan rates by 50 basis points, bringing them down to 7.50% starting June 19. The move follows the RBI's recent repo rate cut and aims to make home ownership more affordable. MD Tribhuwan Adhikari emphasized the company's commitment to passing on policy benefits to customers. This reduction is expected to particularly benefit mid-income and affordable housing segments.

Key Points: LIC Housing Finance Cuts Home Loan Rates After RBI Repo Rate Reduction

  • LIC Housing Finance reduces rates to 7.50% effective June 19
  • Aligns with RBI's 50 bps repo rate cut
  • Aims to boost demand in affordable housing
  • Follows RBI Governor's hint on limited future rate cuts
2 min read

LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut

LIC Housing Finance lowers home loan rates by 50 bps to 7.50%, passing on RBI repo rate cut benefits to boost affordability.

"We remain committed to making home ownership more accessible. – Tribhuwan Adhikari, MD & CEO, LIC Housing Finance"

New Delhi, June 21

LIC Housing Finance has reduced its rate of interest on new home loans by 50 basis points, in line with the similar degree of repo rate cut by yje Reserve Bank of India (RBI).

With this revision, interest rates on new home loan sanctions will now start from 7.50 per cent, effective June 19, 2025, coinciding with the company's 36th Foundation Day, it said in a statement Saturday.

This move by LIC Housing Finance is aimed at passing on the benefit to new home loan customers to encourage home ownership and improve affordability.

The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy.

After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts is limited, RBI Governor Sanjay Malhotra had hinted after the latest monetary policy meeting.

Tribhuwan Adhikari, MD and 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," the MD and CEO added.

LIC Housing Finance Ltd is a leading housing finance company having networks of offices across India and a 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.

- ANI

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Reader Comments

Here are 6 authentic Indian perspective comments for the LIC Housing Finance rate cut article:
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Rahul K.
This is great news for first-time home buyers like me! I've been waiting for rates to come down before applying for a loan. 7.5% is very reasonable compared to what my cousin paid last year. Hope other banks follow suit quickly.
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Priya M.
While the rate cut is welcome, I wish they would extend similar benefits to existing loan customers. We've been paying EMIs faithfully for years but never see our rates revised downward as quickly as new loans. #FairTreatment
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Amit S.
Smart move by LIC Housing! 🏡 With real estate prices stabilizing in many cities, this rate cut comes at perfect timing. Might finally be able to buy that 2BHK in Gurgaon I've been eyeing. Need to check processing fees though - that's where they often get you.
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Neha T.
As someone who works in banking, I appreciate how LIC Housing is quick to respond to RBI policy changes. Many private banks drag their feet on rate cuts. This will definitely boost housing demand before the festive season starts.
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Vikram J.
Good initiative but the real test will be in implementation. Last time when rates were cut, the loan approval process became very slow as everyone rushed to apply. Hope they've increased their processing capacity this time.
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Sunita R.
Rate cuts are good but property prices in metro cities are still too high. Government should focus more on affordable housing projects with these lower rates. Middle class families need proper homes, not just loans.

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