Offering a major relief to homebuyers, LIC Housing Finance has slashed its home loan interest rates on new home loans to 7.15 per cent. The move comes amid softening interest rate environment. The revised interest rates on new home loan sanctions will now be effective December 22, 2025, the mortgage firm said in a statement on Monday.
The reduction follows the recent 25 bps repo rate cut by the RBI’s Monetary Policy Committee (MPC).
In an official statement, the lender said, "At a time when buyers are cautiously reassessing their decisions, this move is expected to lift homebuyer sentiment, reinforcing LIC Housing Finance’s commitment to making home ownership more affordable".
Further, borrowers with a CIBIL score of 825 and above can now avail the lowest home loan interest rate, as the revised pricing links rates directly to credit scores for loans up to ₹5 crore.
According to data available on the LIC Housing Finance website, while borrowers with a CIBIL score of 825 or above get the best rates, customers with scores in the 700–724 range, interest rates begin at 7.95% and go up to 8.25% for larger loans. Borrowers with weaker credit histories, especially those with CIBIL scores below 600, face significantly higher rates depending on the loan amount.
Check below detailed chart for new interest rates
| CIBIL Score | Loan Slab | Interest Rate |
| CIBIL ≥ 825 | Up to 5 crs More than 5 crs up to 15 crs | 7.15% 7.45% |
| CIBIL 800-824 | Up to 5 crs More than 5 crs up to 15 crs | 7.25% 7.55% |
| CIBIL 775-799 | Up to 50 lakhs More than 50 lakhs up to 2 crs More than 2 crs up to 15 crs | 7.35% 7.45% 7.65% |
| CIBIL 750 -774 | Up to 50 lakhs More than 50 lakhs up to 2 crs More than 2 crs up to 15 crs | 7.45% 7.55% 7.75% |
| CIBIL 725 -749 | Up to 50 lakhs More than 50 lakhs up to 2 crs More than 2 crs up to 15 crs | 7.65% 7.75% 7.95% |
| CIBIL 700 -724 | Up to 50 lakhs More than 50 lakhs up to 2 crs More than 2 crs up to 15 crs | 7.95% 8.05% 8.25% |
| CIBIL 600-699 | Up to 50 lakhs More than 50 lakhs up to 2 crs More than 2 crs up to 15 crs | 8.75% 8.85% 9.50% |
| CIBIL <600 | Up to 50 lakhs More than 50 lakhs up to 2 crs More than 2 crs up to 5 crs | 9.55% 9.65% 10.00% |
| 150≤CIBIL≤200 | Up to 35 lakhs More than 35 lakhs up to 2 crs | 7.65% 7.75% |
| 101≤CIBIL<150 | Up to 35 lakhs More than 35 lakhs up to 2 crs | 7.95% 8.05% |
How LIC Housing Finance home loan interest rates differ from SBI's
When compared with State Bank of India (SBI), LIC Housing Finance currently offers a slightly lower entry-level home loan rate, making it more attractive for borrowers with strong credit profiles. LIC Housing Finance’s home loan rates start at 7.15%, undercutting SBI’s 7.25% starting rate for standard home loans. However, SBI provides a wider range of loan products, including overdraft-linked Maxgain home loans, top-up loans and loan-against-property options, with interest rates going up to 8.45% for regular home loans and higher for specialised products.
While LIC Housing Finance may suit high CIBIL score borrowers looking for a straightforward, low-cost home loan, SBI remains competitive for customers seeking flexible loan structures or bundled banking benefits, with its rates effective from December 15, 2025.
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