LIC Home Loan Interest Rate – Complete Guide & EMI Calculation

Key Insights 
 

1. Check out the latest LIC home loan interest rates, starting from 7.70%. Try the LIC 2025 EMI calculator to plan your monthly budget with confidence.

2. You can choose from plot, purchase, or renovation loans. LIC Housing Finance offers competitive interest rates for both salaried and self-employed applicants.

3. LIC has simple processing fee options, like ₹3,000 plus GST for amounts up to ₹25,00,000. You can apply online or visit a branch if you prefer personal guidance.

Are you planning your dream home? 

Start by checking the current LIC home loan interest rate. If you already know the LIC home loan interest rate for 2025, this will help you set a realistic budget and understand how it affects your monthly EMI and the total repayment.

The LIC Housing Finance home loan interest rate is basically the cost you pay to borrow money for your property. 

It’s the yearly percentage added to your loan amount and determines your monthly payments. This rate can change, and sometimes there are special LIC home loan interest rate for govt employees.

Example:

Before I applied, I tried the LIC home loan interest rate 2025 EMI calculator. For a ₹50,00,000 loan at 8.40% per year over 20 years, my EMI comes to ₹43,130. This helped me plan my finances with more confidence.

Types of Home Loans Offered by LIC Bank

Whether you are buying a new home or planning a renovation, LIC Housing Finance offers a home loan designed to support your property needs.

Whether you need a loan for a new plot or a renovation, LIC Housing offers different home loan options. You can get a competitive interest rate based on your profile.

Bonus Tip: Do you know? If you are buying a plot, you can get a maximum loan of 75% of the plot’s value from LIC Home Loan.

LIC Home Loan Processing Fees & Charges 

Find out what your dream home will really cost. See how LIC home loan fees and charges affect your total loan amount.

Make your budget with confidence. When you include these LIC home loan charges, you can be sure there are no hidden costs in your total loan amount.

Bonus Tip: Do you know? All fees, costs, charges, and expenses incurred by LICHFL for preserving the property or pursuing recovery, including legal remedies, will be payable as applicable.

How to Apply for a LIC Home Loan?

Are you ready to build your dream home? Learn how to apply for a LIC home loan in a few easy steps and get your funds fast.

LIC Home Loan Online Process:

Here are the steps you can use to apply for a LIC home loan online in just a few minutes.

1. Start by visiting the official LIC Housing Finance website or downloading the HOMY mobile app.
2. Submit your enquiry or application.
   • Click on the “Apply for Home Loan” or “Home Loan Enquiry” section.
   • Enter your basic details as prompted, then click 'Get Started' or 'Submit'.
3. After you submit your details, an LIC Housing Finance representative will get in touch to explain your options, collect more information, and guide you through the next steps.
4. You will need to upload self-attested copies of your KYC, income proof, and property documents using the customer portal or app.
5. The bank’s team will review your documents, check your credit, assess the property’s value, and carry out legal checks. If all goes well, this process usually takes about two weeks.
6. Once your documents are verified, LIC HFL will send you an offer letter with the loan amount, interest rate, tenure, and EMI details. If you agree to the terms, you will sign the home loan agreement.
7. After all documents and legal steps are complete, the loan amount will be disbursed.

Get your home loan easily using the LIC website. The process is simple and fully digital.

LIC Home Loan Offline Process:

Visit your nearest LIC branch for personalised guidance tailored to your needs.

1. Find the LIC Housing Finance branch or LIC office closest to you and visit in person.
2. Speak with a loan officer or bank representative. They will explain home loan schemes, check your eligibility, and answer your questions.
3. The representative will give you a paper application form. Fill it out with your personal, financial, and property details.
4. You can gather and submit your KYC, income proof, and property documents for verification. The staff will guide you through the documentation process.
5. LIC HFL will review your financial history by checking your credit score, carry out legal checks on the property, and arrange for a site valuation by a valuer or engineer.
6. If your application is approved, the bank will send you an offer letter with details about the loan amount, interest rate, tenure, and EMI structure.
7. After you accept the terms and sign the home loan agreement, the funds will be released as planned, usually sent directly to the seller or builder’s account.

If you need help or have questions, you can visit a branch for in-person support and clear answers.

Conclusion

First, check the current LIC home loan interest rate and use the 2025 EMI calculator. Next, consider the processing fees and pick the application method that works best for you. This will help you plan your home purchase with confidence.

FAQS

What's your Home Interest Rate? Am I being scammed by LIC Housing for paying 8.35%?  

You are not being scammed by LIC Housing Finance (LIC HFL) for paying 8.35% interest. This rate is competitive and is similar to what other major lenders in India are offering as of December 2025.

When will LICHFL reduce the home loan rate? 

LIC Housing Finance (LIC HFL) lowered its home loan rates in mid-2025, with new rates starting at about 7.50% from June 19, 2025, after the RBI cut its repo rate. Any further rate cuts will depend on future RBI decisions and market trends. Existing customers with floating-rate loans may see changes after internal reviews or scheduled resets, while new borrowers get the lower rates right away.

Is it advisable to take a loan from LIC Housing Finance? 

Taking a loan from LIC Housing Finance (LIC HFL) is a good option for many people because of its competitive rates, helpful service, and variety of products. It works well for salaried, self-employed, and NRI borrowers who want flexible terms up to 30 years. However, it’s important to compare offers from other lenders like SBI to find the best deal for your needs.

What are some bad reviews about taking a home loan from LIC Housing Finance India Limited? 

Most negative reviews of LIC Housing Finance (LICHFL) home loans in India mention poor customer service, unclear interest rate changes, and slow, outdated processes.

What is the range of interest rates offered forthe  LIC Home Loan?

LIC Housing Finance offers home loan interest rates starting at 7.70% per year. The exact rate depends on your credit profile.
 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.