A Fresh Wave of Affordability: LIC Housing Finance Cuts Home Loan Rates

A Milestone for Aspiring Homeowners

The dream of owning a home just became more attainable for countless Indians, as LIC Housing Finance unveils a significant reduction in home loan interest rates. Effective June 19, 2025—marking the company’s 36th Foundation Day—new home loan rates will begin at just 7.50%. This bold move, a direct response to the Reserve Bank of India’s (RBI) cumulative 100 basis point repo rate cut since February 2025, is set to invigorate the housing market and make property ownership more accessible than ever.

A Boost for Housing Demand and Economic Revival

The rate cut by LIC Housing Finance is more than a gesture—it’s a catalyst for change. By passing on the benefits of lower interest rates to customers, the company aims to fuel demand for homes, particularly in the affordable and mid-income segments where every percentage point matters. This strategic step is expected to breathe new life into the economy, encouraging fresh credit uptake and supporting overall growth.

Leadership’s Vision for Inclusive Growth

Tribhuwan Adhikari, Managing Director and CEO of LIC Housing Finance, emphasized the company’s unwavering commitment to expanding homeownership. “As we celebrate our 36th Foundation Day, we remain dedicated to making homeownership more accessible,” Adhikari stated. “This rate reduction reflects our alignment with RBI’s policy direction and our determination to deliver tangible benefits to our customers. We are confident this initiative will provide a significant boost to housing demand, especially among those who have long aspired to own a home.”

A Legacy of Trust and Reach

With a robust network of offices across India and a presence in Dubai, LIC Housing Finance has long been a trusted partner for aspiring homeowners. Since its inception in 1989 and its public listing in 1994, the company has consistently championed the cause of affordable housing, leveraging its extensive reach and innovative product offerings to serve a diverse customer base. Today, through its subsidiary LIC HFL Financial Services Ltd., the company continues to expand access to home financing solutions.

A Bright Future for Homebuyers

As the RBI signals a cautious outlook on further rate cuts, LIC Housing Finance’s latest move stands as a timely and impactful intervention. By lowering the cost of borrowing, the company is not only helping individuals realize their homeownership dreams but also contributing to the broader economic momentum. This is a moment of renewed hope and possibility for homebuyers across the nation.