Synopsis: Planning to buy a home or switch your loan? LIC Housing Finance has reduced its home loan rates to 7.15% following the RBI’s repo rate cut. Check who gets this rate, EMI benefits, and whether you should apply now.
For most of us, buying a home has started to feel stressful. Property prices are high, and home loan EMIs have been eating into monthly budgets. Even people who were ready to buy chose to wait, hoping interest rates would come down. And that wait may finally be worth it.
Recently, the Reserve Bank of India reduced the repo rate by 25 basis points. When this rate comes down, loans usually become cheaper for customers. LIC Housing Finance has announced a cut in its home loan interest rates, bringing the starting rate from 7.50% p.a. to 7.15%.
What Has LIC Housing Finance Changed?
LIC Housing Finance has lowered the interest rate on new home loans. This means anyone applying for a fresh home loan from 22 December 2025 onwards can get a lower starting rate. The company said this step is meant to make home loans more affordable and help buyers feel more confident about taking a long-term loan.
How This Will Help You as a Buyer
- Your monthly EMI can come down
- The total interest paid over the years becomes lower
- Buying a home feels more manageable
For first-time buyers or families planning to upgrade their home, this can make a real difference.
Who is eligible for the 7.15% rate?
The 7.15% starting rate is not for everyone. It applies to borrowers who have a very high credit score (CIBIL of 825 or above) and take a loan up to ₹5 crore. People with lower credit scores or larger loan amounts will get rates above 7.15%.
According to LIC Housing Finance’s official details, home loans are available for salaried individuals, self-employed individuals, and professionals. Being an Indian Resident is a must. Salaried people can repay the loan over up to 30 years, and Self-employed individuals can repay the loan over up to 25 years.
Key Home Loan Features You Should Know
- One of the lowest interest rates available in the market
- No prepayment charges, which means you can repay early without penalty
- Enjoy the flexible loan tenure up to 30 years
- Available for several categories like construction, house/flat purchase, and repairs, and renovation of the existing properties.
- Balance transfer of the existing Home Loan is possible
- Simple documentation process
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Interest Rate As Per The CIBIL Score (Salaried Individuals)
| CIBIL Score | Loan Slab | Interest Rate |
| CIBIL ≥ 825 | Up to 5 crs | 7.15% |
| More than 5 crs &up to 15 crs | 7.45% | |
| CIBIL 800-824 | Up to 5 crs | 7.25% |
| More than 5 crs &up to 15 crs | 7.55% | |
| CIBIL 775-799 | Up to 50 lakhs | 7.35% |
| More than 50 lakhs &up to 2 crs | 7.45% | |
| More than 2 crs &up to 15 crs | 7.65% | |
| CIBIL 750 -774 | Up to 50 lakhs | 7.45% |
| More than 50 lakhs &up to 2 crs | 7.55% | |
| More than 2 crs &up to 15 crs | 7.75% | |
| CIBIL 725 -749 | Up to 50 lakhs | 7.65% |
| More than 50 lakhs &up to 2 crs | 7.75% | |
| More than 2 crs &up to 15 crs | 7.95% | |
| CIBIL 700 -724 | Up to 50 lakhs | 7.95% |
| More than 50 lakhs &up to 2 crs | 8.05% | |
| More than 2 crs &up to 15 crs | 8.25% | |
| CIBIL 600-699 | Up to 50 lakhs | 8.75% |
| More than 50 lakhs &up to 2 crs | 8.85% | |
| More than 2 crs &up to 15 crs | 9.50% | |
| CIBIL <600 | Up to 50 lakhs | 9.55% |
| More than 50 lakhs &up to 2 crs | 9.65% | |
| More than 2 crs &up to 15 crs | 10.00% | |
| 150≤CIBIL≤200 | Up to 35 lakhs | 7.65% |
| More than 35 lakhs &up to 2 crs | 7.75% | |
| 101≤CIBIL<150 | Up to 35 lakhs | 7.95% |
| More than 35 lakhs &up to 2 crs | 8.05% |
Source: LIC Housing.com
Final Words
For anyone planning to get a home loan, this could be a right moment to consider. Home loan rates have come down, which will eventually reduce your EMI burden. This makes planning a home purchase feel less stressful.
Written by: Supriya
