There is good news for people planning to buy a house. LIC Housing Finance has reduced its home loan interest rates. The new starting interest rate for fresh home loans is now 7.15% per year.
This interest rate is directly linked to your CIBIL score. This means borrowers with a higher credit score will get loans at lower interest rates, making home loans cheaper for financially disciplined customers.
New Home Loan Interest Rates Based on CIBIL Score
LIC Housing Finance has fixed different interest rates depending on a customer’s CIBIL score and loan amount. Customers with a CIBIL score of 825 or above get the lowest interest rates.
LIC Housing Finance Home Loan Interest Rates (Latest)
| CIBIL Score | Loan Amount | Interest Rate (% p.a.) |
|---|---|---|
| ≥ 825 | Up to ₹5 crore | 7.15% |
| ₹5 crore – ₹15 crore | 7.45% | |
| 800 – 824 | Up to ₹5 crore | 7.25% |
| ₹5 crore – ₹15 crore | 7.55% | |
| 775 – 799 | Up to ₹50 lakh | 7.35% |
| ₹50 lakh – ₹2 crore | 7.45% | |
| ₹2 crore – ₹15 crore | 7.65% | |
| 750 – 774 | Up to ₹50 lakh | 7.45% |
| ₹50 lakh – ₹2 crore | 7.55% | |
| ₹2 crore – ₹15 crore | 7.75% | |
| 725 – 749 | Up to ₹50 lakh | 7.65% |
| ₹50 lakh – ₹2 crore | 7.75% | |
| ₹2 crore – ₹15 crore | 7.95% | |
| 700 – 724 | Up to ₹50 lakh | 7.95% |
| ₹50 lakh – ₹2 crore | 8.05% | |
| ₹2 crore – ₹15 crore | 8.25% | |
| 600 – 699 | Up to ₹50 lakh | 8.75% |
| ₹50 lakh – ₹2 crore | 8.85% | |
| ₹2 crore – ₹15 crore | 9.50% | |
| Below 600 | Up to ₹50 lakh | 9.55% |
| ₹50 lakh – ₹2 crore | 9.65% | |
| ₹2 crore – ₹5 crore | 10.00% | |
| 150 – 200* | Up to ₹35 lakh | 7.65% |
| ₹35 lakh – ₹2 crore | 7.75% | |
| 101 – 149* | Up to ₹35 lakh | 7.95% |
| ₹35 lakh – ₹2 crore | 8.05% |
*Special cases as per LIC Housing Finance norms.
Comparison with SBI Home Loan Interest Rates
When compared with State Bank of India (SBI), LIC Housing Finance appears to be slightly cheaper for borrowers with a high CIBIL score.
SBI Home Loan Interest Rates (Effective from December 15, 2025)
| Loan Type | Interest Rate |
|---|---|
| Home Loan (Term Loan) | 7.25% – 8.45% |
| Home Loan Maxgain (OD) | 7.50% – 8.70% |
| Top-Up Loan | 7.75% – 10.50% |
| Top-Up Loan (OD) | 8.00% – 9.20% |
| Loan Against Property | 8.95% – 10.50% |
| Reverse Mortgage Loan | 10.30% |
LIC Housing Finance’s starting rate of 7.15% is lower than SBI’s 7.25%, making it a better option for borrowers with strong credit profiles who want a regular home loan.
What Is a CIBIL Score?
A CIBIL score is a 3-digit number that shows your credit history. It reflects how well you have managed loans and credit card payments in the past.
A higher score means better repayment history
A higher score increases your chances of getting loans at lower interest rates
Why This Decision Matters for Homebuyers
Even a small cut in interest rates can reduce EMIs significantly over a long period. Since home loans usually have tenures of 20 to 30 years, this rate reduction can save borrowers a large amount of money.
This move is beneficial for:
New homebuyers
Borrowers planning a balance transfer to reduce EMIs
