LIC Housing Finance Lowers New Home Loan Rates to 7.50%

Mumbai – LIC Housing Finance announced on Saturday that it has reduced interest rates on new home loans by 50 basis points, bringing the starting rate down to 7.50%. The revised rates came into effect on June 19, coinciding with the company’s 36th Foundation Day.

The rate cut follows the recent repo rate reduction by the Reserve Bank of India’s Monetary Policy Committee (MPC), with LIC Housing Finance passing on the benefit to customers to promote home ownership and enhance affordability.

“As we celebrate our 36th Foundation Day, we reaffirm our commitment to making home ownership more accessible,” said Tribhuwan Adhikari, Managing Director and CEO of LIC Housing Finance. “This rate cut reflects our alignment with RBI’s policy direction and our ongoing efforts to support our customers.”

Adhikari added, “We believe this move will further stimulate housing demand, especially in the affordable and mid-income segments, where home-buying decisions are significantly influenced by interest rates.”

Earlier this week, the State Bank of India (SBI) also cut its lending rates by 50 basis points, following the RBI's policy change. SBI’s Repo-Linked Lending Rate (RLLR) now stands at 7.75%, while its External Benchmark-Based Lending Rate (EBLR) has been reduced to 8.15% from 8.65%, effective June 15.

Other major banks, including HDFC Bank, have also responded to the RBI's move. HDFC recently revised its interest rates, now offering up to 6.6% per annum on fixed deposits below ?3 crore for general citizens.

The recent wave of interest rate cuts across banks is expected to boost consumer borrowing and stimulate demand in the housing and financial markets.

With inputs from IANS