When planning to buy a home, selecting the right lender can help you save significantly over the long term. The LIC home loan interest rate is one of the most competitive in India, offering flexible options to salaried, self-employed, and even LIC employees. Whether you’re a first-time buyer or switching from another lender, LIC Housing Finance offers reliability, attractive interest rates, and smooth processing.
This article covers everything: current LIC housing finance interest rate, how it varies as per your CIBIL score, employee benefits, and how to use the LIC home loan interest rate calculator to plan better.
LIC Home Loan Interest Rate – Key Highlights
| Category | Interest Rate (p.a.) |
|---|---|
| Salaried (Loan up to ₹50 lakh) | 8.50% – 9.60% |
| Salaried (Above ₹50 lakh) | 8.60% – 9.80% |
| Self-Employed | 8.65% – 10.00% |
| Women Borrowers | 0.05% lower than base rate |
| LIC Employees | 8.40% – 9.50% |
| CIBIL Score 750+ | Lower end of rate band |
| CIBIL Score below 700 | Higher end of rate band |
| Reset Period | Every 6 months |
The interest rate of LIC housing loan is floating in most cases, with the option for fixed rate under special schemes.
LIC Home Loan Interest Rate Chart vs Other Lenders
| Lender | Starting Interest Rate | Tenure | Processing Fee |
|---|---|---|---|
| LIC Housing | 8.50% | Up to 30 yrs | Up to 0.5% of loan amount |
| SBI | 8.40% | Up to 30 yrs | Up to 0.35% |
| HDFC Ltd | 8.35% | Up to 30 yrs | Up to 0.50% |
| ICICI Bank | 8.45% | Up to 30 yrs | Up to 0.50% |
| Axis Bank | 8.50% | Up to 30 yrs | Up to 1.00% |
The LIC housing loan interest rate remains highly competitive and gets even better for those with strong CIBIL scores or internal employees.
EMI Calculator
Benefits of Choosing LIC Housing Loan
- Attractive Interest Rates for all categories
- Special Discounts for Women & LIC Employees
- High Loan Amounts up to 90% of property value
- Flexible Tenures up to 30 years
- Minimal Documentation and fast approvals
- Online Loan Tracking and mobile access
The LIC home loan interest rates for LIC employees is slightly lower and comes with priority disbursal.
LIC Home Loan Interest Rate as Per CIBIL Score
| CIBIL Score Range | Estimated Interest Rate (p.a.) |
|---|---|
| 750 and above | 8.50% – 8.75% |
| 700 – 749 | 8.75% – 9.25% |
| Below 700 | 9.25% – 10.00% |
Higher CIBIL score = lower LIC home loan percentage. Use a LIC home loan interest rates calculator to check your EMI based on score and tenure.
Use LIC Home Loan Interest Rate Calculator
A LIC home loan EMI calculator helps you calculate monthly installments based on loan amount, interest rate, and tenure.
Sample EMI Calculation:
| Loan Amount | Tenure | Interest Rate | EMI (Approx.) |
|---|---|---|---|
| ₹30,00,000 | 20 years | 8.60% | ₹26,240 |
| ₹50,00,000 | 25 years | 8.75% | ₹41,100 |
| ₹75,00,000 | 30 years | 9.00% | ₹60,300 |
LIC Home Loan Interest Rate Cut – What to Know
From time to time, LIC Housing Finance announces an interest rate cut depending on RBI’s repo rate, inflation, and market trends. If you’re on a floating-rate plan, any LIC home loan interest rates reduction is automatically passed on to you in the next reset period.
You can also switch to lower interest under balance transfer if your current rate is high.
Step-by-Step LIC Home Loan Application Process
Step 1: Pre-Application
Check your CIBIL score and calculate EMI using the LIC home loan EMI calculator.
Step 2: Apply Online or Visit Branch
You can apply through LIC Housing’s website or visit a local branch.
Step 3: Submit Documents
Upload required documents like Aadhaar, PAN, income proof, and property papers.
Step 4: Loan Assessment
LIC verifies your credit score, income, and property value.
Step 5: Sanction Letter
If eligible, you receive a loan offer letter with interest rate and terms.
Step 6: Property Verification
Legal and technical checks are done on the property.
Step 7: Loan Disbursement
After final approval, the sanctioned loan is released to the builder or seller.
Eligibility Criteria
- Age: 21 to 60 years (salaried), up to 65 years (self-employed)
- Income: Minimum ₹25,000 per month
- Credit Score: 700+ preferred
- Loan Amount: Up to 90% of property value
- Nationality: Indian Resident or NRI
Required Documents
| Salaried | Self-Employed |
|---|---|
| PAN & Aadhaar Card | PAN & Aadhaar Card |
| Salary Slips (last 3 months) | Business registration proof |
| Bank Statement (6 months) | ITR & balance sheets (2 years) |
| Form 16 or ITR | Bank statement (6 months) |
| Property documents | Property documents |
Final Tips to Lower LIC Home Loan Interest Rate
- Apply jointly with your spouse
- Maintain a credit score above 750
- Opt for auto-debit for EMI payment
- Regularly monitor for LIC home loan interest rates cut notifications
- Switch to floating rate if expecting future rate drops
A. LIC HFL (Housing Finance) home loan interest rates currently range from 7.50% p.a. onwards.
A. A comparison of LIC Housing Finance vs SBI Home Loan reveals that LIC offers slightly lower interest rates, ranging from 8.00% to 8.65% p.a., while SBI rates range from 8.00% to 8.95% p.a. Even this minor rate difference can significantly impact your long-term finances.
A. Loans against LIC policies do not affect your credit score.
A. HDFC offers competitive interest rates between 8.50% and 9.65%, ideal for those aiming to reduce monthly EMIs. Meanwhile, LIC HFL provides a broader range of 8.00% to 10.75%, which could result in greater savings over the loan tenure depending on the borrower’s profile.
A. Key Eligibility Factors:
Age: Minimum 21 years for applicants, and 18 years for co-applicants. Maximum age (age + loan term) typically up to retirement age for salaried and up to 65 years for non-salaried.
Income: Salaried individuals need a minimum monthly income of Rs 25,000, while self-employed individuals need to demonstrate consistent business profits for at least 2 years.
Credit Score: A credit score above 600 is generally required.
Employment Stability: Salaried individuals should have at least two years of work experience.
Property Type: LIC housing loans can be used for purchasing under-construction or ready-built properties, resale properties, construction on a plot, house extension, or renovation.
Other Factors: LIC HFL also considers repayment capacity, age, co-applicant’s income (if any), assets and liabilities, savings history, and occupation stability when determining eligibility.
A. LIC offers multiple loan options, each with different interest rates. For home loans, LIC Housing Finance (LIC HFL) provides rates starting from 7.50% p.a. for salaried individuals, with slightly higher rates for self-employed applicants, depending on the scheme and borrower profile. Loans against LIC policies generally carry interest rates between 9% and 11%.
Conclusion
LIC home loan interest rates offer a great mix of affordability and flexibility. Whether you are a salaried person, self-employed, or a LIC employee, you can enjoy custom benefits with low documentation and smooth processing.
Use the LIC home loan interest rates calculator to find the perfect EMI plan, and apply online or through a branch for a seamless experience. Whether it’s a new home, a plot, or home renovation, LIC housing finance interest rate structures are designed to meet your goals with ease.