LIC Housing Finance Slashes Home Loan Rates to Boost Affordability

In an initiative aligned with the Reserve Bank of India's recent monetary policy shift, LIC Housing Finance has announced a reduction in interest rates on new home loans by 50 basis points. The new rates, starting at 7.50%, will take effect from June 19, 2025, coinciding with its 36th Foundation Day, according to a Saturday statement from the company.

This strategic move by LIC Housing is intended to pass the benefits of reduced rates to consumers, encouraging home ownership and making housing more affordable. The RBI's proactive repo rate cuts aim to stimulate an economy showing moderated growth, potentially heightening demand for fresh credit.

With a total of 100 basis points cut in the repo rate since February 2025, the RBI Governor, Sanjay Malhotra, had cautioned about limited further rate cut potential after the latest policy meeting. LIC Housing Finance's MD and CEO, Tribhuwan Adhikari, remarked on the occasion of the company's foundation anniversary, emphasizing their commitment to aligning with RBI's policies for more accessible home ownership.

Adhikari also expressed confidence that the reduced rates will significantly increase housing demand, especially within the affordable and mid-income segments. As one of India's leading housing finance entities, LIC Housing Finance continues to expand its reach through an extensive network of offices and subsidiary branches in both India and Dubai.

Founded by Life Insurance Corporation in 1989 and entering the public market in 1994, LIC Housing Finance has been pivotal in shaping home financing dynamics across the nation.

(With inputs from agencies.)