LIC Housing Finance Slashes New Home Loan Interest Rates to 7.15%

LIC Housing Finance Ltd has announced a reduction in interest rates on new home loans, aiming to improve affordability for prospective borrowers. The revised rates will apply to fresh loan sanctions and come into effect later this month. 

Lower Rates for New Borrowers 

As per news reports, the mortgage lender said interest rates on new home loans will now start from 7.15%, with the revised pricing applicable from December 22, 2025.  

The move is expected to support homebuyer sentiment at a time when consumers are reassessing large purchase decisions amid changing macroeconomic conditions. 

Linked to Policy Rate Easing 

The rate cut follows the recent 25 basis points reduction in the repo rate by the Reserve Bank of India’s Monetary Policy Committee.  

LIC Housing Finance said the revision reflects its intent to pass on the benefit of lower policy rates to customers and reinforce its focus on housing affordability. 

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LIC Housing Finance Share Price Performance  

As of December 23, 2025, at 10:09 AM, LIC Housing Finance Ltd share price is trading at ₹535.95 per share, reflecting a gain of 0.38% from the previous closing price. Over the past month, the stock has declined by 1.83%. 

Conclusion 

With this rate reduction, LIC Housing Finance joins other lenders adjusting pricing in line with softer policy rates, a move that could help revive housing demand and ease borrowing costs for new homebuyers. 

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