LIC Housing Finance Home Loan 7.20% Interest Rate

Q: What is the current LIC Housing Finance home loan interest rate?

LIC Housing Finance home loan interest rates start from 7.20% per annum for salaried borrowers with CIBIL score above 750 and loan amount up to ₹30 lakh.

7.20%

Interest Rate (p.a.)

₹

₹21K

Processing Fee

📅

30 yrs

Max Tenure

💰

₹3L–5Cr+

Loan Amount

📊

650+

CIBIL Score

⚡

7-10 days

Disbursement

🏆 Why Choose LIC Housing Finance Home Loan?

🏛️

India's Most Trusted HFC

Housing finance company with 1,500+ branches nationwide — backed by LIC of India trust

📉

Competitive Rates

Home loan rates starting from 7.20% p.a. — among the lowest in HFC sector

🔄

LIC HFL MaxGain Facility

Unique overdraft facility — park surplus funds to reduce interest burden without prepayment

⚡

Quick Sanction

Digital KYC, instant CIBIL check, and sanction within 48 hours for eligible applicants

👩

Women's Special Rate

0.05% extra concession for women borrowers + special schemes

🆓

Zero Prepayment

No prepayment charges on floating rate home loans as per RBI norms

⭐ LIC Housing Finance Special Home Loan Schemes

🏦

LIC HFL MaxGain

✓ Overdraft Facility

7.20% p.a.

🎖️

LIC HFL Privilege Home Loan

✓ For Govt Employees

7.15% p.a.

📈

LIC HFL Flexi Pay

✓ Step-up EMI Option

7.20% p.a.

✈️

LIC HFL NRI Home Loan

✓ Special for NRIs

7.30% p.a.

🏦 0% Processing Fee for Women Applicants

🎯 Special Rates for Defence Personnel

⭐ Free CIBIL Score Check

📱 Paperless Application Process

🚀 48-Hour Disbursement for Ready Possession

ℹ About LIC Housing Finance Home Loan

LIC Housing Finance, India's most trusted housing finance company, offers home loans at competitive interest rates starting from 7.20% p.a. With over 10 million satisfied customers and 1,500+ branches, LIC Housing Finance home loans come with flexible repayment options, minimal documentation, and quick approval process. Being the country's most trusted HFC, backed by LIC of India, we are committed to providing transparent and customer-friendly loan solutions. In 2026, LIC Housing Finance continues to lead the HFC sector with digital-first processes and best-in-class customer service.

⭐ Key Features & Benefits

✓Lowest Interest Rates among HFCs

✓Quick Approval & Disbursement in 24-48 hrs

✓Flexible Repayment Tenure up to 30 Years

✓Zero Prepayment Charges on Floating Rates

✓100% Digital Paperless Process

✓Special Discount for Women Applicants

✓LIC HFL MaxGain Overdraft Facility

✓Doorstep Document Collection Service

✓Balance Transfer with Top-Up Loan Facility

👤 LIC Housing Finance Home Loan Eligibility

Age21 – 70 years

EmploymentSalaried / Self-Employed / Business

Min Income₹25,000/month (Salaried)

Work Exp.2+ years (Salaried)

CIBIL Score550+ (750+ for best rates)

Property AgeUp to 100 years

NationalityIndian / NRI

Max LTVUp to 90% of property value

📄 Documents Required

📄 Identity Proof
Aadhaar Card, PAN Card, Voter ID, Passport

🏠 Address Proof
Aadhaar Card, Utility Bill (last 3 months)

💰 Income (Salaried)
Salary Slips (3 months), Form 16

💰 Income (Self-Employed)
ITR (2 years), Audited Balance Sheet

🏦 Property Docs
Title Deed, Sale Agreement, NOC

📸 Others
2 Passport Size Photos, Application Form

₹ Charges Breakdown

Processing Fee

₹21,100 + GST

CERSAI Charges

₹100 + GST

Legal & Technical

₹3,000 – ₹8,000

Stamp Duty & Reg.

As per state govt

Prepayment Charges

Zero on floating rate

Late Payment Penalty

2% p.m. on overdue

🛣 Loan Process (Login to Disbursement)

👤

Step 1: Online Registration

Visit LIC Housing Finance official website or BankerMart to apply online

⏱ 5-10 min

📁

Step 2: Document Upload

Upload KYC, income proof, and property documents

⏱ 15-20 min

✅

Step 3: Verification & CIBIL

Bank verifies documents and checks CIBIL score

⏱ 2-3 days

🏡

Step 4: Property Valuation

LIC Housing Finance's empanelled valuer inspects the property

⏱ 2-3 days

📝

Step 5: Loan Sanction

Loan gets approved and sanction letter issued

⏱ 3-5 days

💸

Step 6: Loan Disbursement

Amount credited to your account

⏱ 2-7 days

⚖ Pros & Cons

👍 Pros / Advantages

✅Competitive interest rates among HFCs
✅Quick approval in 24-48 hours
✅Special schemes for women borrowers
✅Zero prepayment charges on floating rate
✅LIC HFL MaxGain overdraft facility
✅Balance transfer facility available
✅Backed by LIC of India trust

👎 Cons / Disadvantages

❌Slightly higher rates than PSU banks
❌Strict documentation requirements
❌Higher processing fee for low CIBIL
❌Limited digital presence in rural areas

Introduction

Mrs. Sharma is a school teacher in Delhi. She wants to buy her first apartment. Her friend Mr. Mehta is a small shop owner who needs money for his daughter's wedding. Both need loans but different kinds. Mrs. Sharma needs a home loan to buy her property. Mr. Mehta needs a loan against property because he already owns a flat and wants funds against it.

Many borrowers get confused between these two products. Both come from LIC Housing Finance. Both use property as the basis. But they serve completely different purposes. The interest rates, eligibility, documents, and tax benefits are not the same.

In this guide, I will explain both LIC Housing Finance Home Loan and LIC Housing Finance Loan Against Property in detail. You will learn the difference between them. You will understand which one suits your situation. You will get current interest rates, eligibility criteria, document lists, application processes, and answers to common questions. I follow current RBI guidelines and LIC Housing Finance policies. No jargon. No fluff. Just practical information from someone who has worked with hundreds of LIC Housing Finance borrowers.

🏠 Understanding LIC Housing Finance Home Loan

What Is an LIC Housing Finance Home Loan

An LIC Housing Finance home loan is a secured loan where the HFC gives you money to purchase or construct a house. The house you buy becomes the security for the loan. You repay the loan in monthly EMIs over a period of up to thirty years. LIC Housing Finance finances up to ninety percent of the property cost for loans up to thirty lakh rupees.

Purpose of LIC Housing Finance Home Loan

You can use an LIC Housing Finance home loan for buying a ready to move house, booking an under construction apartment, constructing a house on land you own, renovating or repairing your existing home, or expanding your current house.

Key Features of LIC Housing Finance Home Loan

LIC Housing Finance offers home loans from three lakh rupees up to five crore rupees. You can choose repayment between five years and thirty years. Floating and fixed rate options available. No prepayment penalty on floating rates. PMAY subsidy available for eligible sections.

Types of LIC Housing Finance Home Loan Products

LIC HFL MaxGain Home Loan: Overdraft facility where you can deposit extra money to reduce interest burden.

LIC HFL Privilege Home Loan: For government employees with lower interest rates.

LIC HFL Flexi Pay Home Loan: For young professionals with gradually increasing EMIs.

LIC HFL NRI Home Loan: For Non Resident Indians to buy property in India.

🏢 Understanding LIC Housing Finance Loan Against Property

What Is LIC Housing Finance Loan Against Property

An LIC Housing Finance loan against property is a secured loan where you pledge your existing residential or commercial property as security. The HFC gives you a loan amount between forty to seventy percent of the propertys current market value. This percentage is called the Loan to Value ratio or LTV.

Purpose of LIC Housing Finance Loan Against Property

RBI does not restrict the end use of loan against property funds. Business owners use it for working capital. Salaried employees use it for childrens education or wedding expenses. Some borrowers use it for medical treatment or debt consolidation.

Key Features of LIC Housing Finance Loan Against Property

LIC Housing Finance offers loan against property from five lakh rupees up to seven point five crore rupees. Repayment tenure between five and twenty years. Top up facility available after one to two years of regular repayment.

Types of Property You Can Mortgage

Residential Property: Self occupied home, rented out flat, or vacant residential land. Lowest interest rates.

Commercial Property: Shops, office spaces, godowns, showrooms, and industrial land. Slightly higher interest rates.

📊 LIC Housing Finance Home Loan Interest Rates 2026

📊 LIC Housing Finance Loan Against Property Interest Rates 2026

Loan Amount	Interest Rate p.a.	Women Rate
Up to ₹30 Lakh	8.75% - 9.25%	8.70% - 9.20%
₹30L - ₹75 Lakh	8.90% - 9.50%	8.85% - 9.45%
Above ₹75 Lakh	9.05% - 9.80%	9.00% - 9.75%

Loan Amount	Residential Property	Commercial Property
Up to ₹50 Lakh	8.75% - 9.85%	9.00% - 10.10%
₹50L - ₹1 Cr	9.05% - 10.35%	9.30% - 10.60%
Above ₹1 Cr	9.35% - 11.10%	9.60% - 11.35%

⚖️ LIC Housing Finance Home Loan vs LIC Housing Finance Loan Against Property

LIC Housing Finance Home Loan

PurposeBuy or construct new house

Property StatusProperty being purchased

LTV RatioUp to 90%

Max Tenure30 years

Interest Rate8.75% - 9.80%

Tax BenefitUnder Sections 80C and 24b

End Use RestrictionMust be for house purchase

DisbursementTo builder or seller account

LIC Housing Finance Loan Against Property

PurposeFunds against existing property

Property StatusAlready owned

LTV RatioUp to 70%

Max Tenure20 years

Interest Rate8.75% - 11.10%

Tax BenefitOnly for business use

End Use RestrictionNo restriction, any purpose

DisbursementTo borrower's savings account

LIC Housing Finance Home Loan Eligibility Criteria

Age21 to 70 Years

Income (Salaried)₹25,000/month

Income (Self-Employed)ITR ₹3L per year

Employment Vintage2+ years

Business Vintage3+ years

CIBIL Score750+ for best rates

Max LTVUp to 90%

FOIR Ratio50-55% maximum

LIC Housing Finance Loan Against Property Eligibility Criteria

Age21 to 65 Years (Salaried), 70 Years (Self)

Income (Salaried)₹30,000/month (Metro)

Income (Self-Employed)ITR ₹3L per year

Employment Vintage2+ years

Business Vintage3+ years

CIBIL Score750+ for best rates

Max LTVUp to 70% for loans above ₹50L

Property AgeLess than 30 years

Documents Required for LIC Housing Finance Home Loan

Identity Proof
Aadhaar Card, PAN Card, Voter ID, Passport

Address Proof
Aadhaar Card, Utility Bill (last 3 months)

Income (Salaried)
Salary Slips (6 months), Form 16, Bank Statement

Income (Self-Employed)
ITR (3 years), Audited Balance Sheet, GST Returns

Property Documents
Sale Agreement, Approved Plan, Title Deed, NOC

Others
Passport Size Photos, Application Form

Documents Required for LIC Housing Finance Loan Against Property

Identity Proof
Aadhaar Card, PAN Card, Voter ID, Passport

Address Proof
Aadhaar Card, Utility Bill

Income (Salaried)
Salary Slips (6 months), Form 16, Bank Statement

Income (Self-Employed)
ITR (3 years), Balance Sheet, GST Returns

Property Documents
Original Title Deed, Tax Receipts, Encumbrance Certificate

Others
Passport Size Photos, Application Form

LIC Housing Finance Home Loan Application Process

Online Application: Visit LIC Housing Finance website or BankerMart. Fill application form. Upload documents. LIC Housing Finance verifies and checks CIBIL. Property valuation done. Sanction letter issued. Loan disbursed to builder or seller account. Total time 10 to 20 days.

Offline Application: Visit nearest LIC Housing Finance branch. Submit physical documents. Rest process similar.

LIC Housing Finance Loan Against Property Application Process

Online Application: Visit LIC Housing Finance website. Select loan against property. Upload documents. Property verification and valuation. Sanction letter issued. Loan credited to your savings account. Total time 10 to 20 days.

Charges and Fees

Processing Fee
₹10,000 + GST

Legal and Valuation
₹3,000 - ₹15,000

CERSAI Charges
₹100 - ₹500

Prepayment Charges
Zero on floating rate

Late Payment
2% per month

Statement Fee
₹500 - ₹1,000 per year

RBI Rules and Guidelines for Home Loan and Loan Against Property

Loan to Value Ratio Rules: For home loans up to ₹30 lakh, maximum LTV is 90%. For loan against property above ₹50 lakh, maximum LTV is 70%.

External Benchmark Lending Rate: Since October 2019, all floating rate loans must be linked to an external benchmark. LIC Housing Finance links its loans to RBI repo rate.

No Prepayment Penalty: RBI prohibits prepayment penalties on floating rate loans to individual borrowers.

Fair Practices Code: Banks must give written sanction letter clearly stating interest rate, processing fee, and all charges.

Right to Timely Disbursement: Once documents submitted, bank must disburse within timeline mentioned in sanction letter.

Tax Benefits on LIC Housing Finance Home Loan

Under Section 80C: Deduction up to ₹1.5 lakh per year on principal repayment. Available only for home loan.

Under Section 24b: Deduction up to ₹2 lakh per year on interest payment for self occupied property.

Under Section 80EEA: Additional deduction of ₹1.5 lakh for first time home buyers with property value below ₹45 lakh.

Loan Against Property: No tax benefits for personal use. Only if used for business purposes, interest is deductible under Section 24b.

Common Mistakes Borrowers Make

Not checking CIBIL score before applying
Check your score three months before applying. If low, spend time improving it.

Applying to multiple banks simultaneously
Every inquiry hits your CIBIL report. Apply to maximum two banks.

Only looking at interest rate
Also compare processing fees, legal charges, and prepayment rules.

Not reading the loan agreement
Read every page before signing. Understand prepayment terms.

Choosing the wrong tenure
Longer tenure means lower EMI but much higher total interest.

Expert Tips to Improve Your Approval Chances

Maintain a healthy bank balance
Banks look at your average balance over last six months.

Reduce existing debt
Close smaller loans before applying to improve FOIR ratio.

Offer a co applicant
Spouse or adult child with good credit can improve eligibility.

Choose lower LTV for LAP
Lower loan to value ratio gives better interest rates.

Apply with LIC Housing Finance where you have account
Existing relationship leads to faster approval.

Get property documents ready in advance
Delays in document submission are the biggest reason for rejection.

Frequently Asked Questions

What is the current LIC Housing Finance home loan interest rate?

As of March 2026, LIC Housing Finance home loan interest rates start from 8.75% per annum for salaried borrowers with CIBIL score above 750 and loan amount up to ₹30 lakh.

What is the current LIC Housing Finance loan against property interest rate?

LIC Housing Finance loan against property interest rates start from 8.75% per annum for residential property with high credit score borrowers. Most borrowers get rates between 9.10% and 11.0%.

What is the maximum tenure for LIC Housing Finance home loan?

LIC Housing Finance offers home loan tenure up to 30 years. The actual tenure depends on your age at application.

What is the maximum tenure for LIC Housing Finance loan against property?

LIC Housing Finance offers loan against property tenure up to 15 years.

Can I prepay my LIC Housing Finance home loan without penalty?

Yes, RBI has prohibited prepayment penalties on floating rate home loans. You can prepay any amount at any time.

Can I prepay my LIC Housing Finance loan against property without penalty?

Yes, the same RBI rule applies. Floating rate loan against property has zero prepayment penalty.

What is the minimum CIBIL score for LIC Housing Finance home loan?

LIC Housing Finance prefers a CIBIL score of 750 or above. Scores between 700-750 are acceptable with higher rates.

What is the minimum CIBIL score for LIC Housing Finance loan against property?

750 is preferred for lowest rates. 700-750 is acceptable with higher rates.

Does LIC Housing Finance offer home loan subsidy under PMAY?

Yes, LIC Housing Finance is a primary lender for PMAY. Eligible beneficiaries can get interest subsidy up to ₹2.67 lakh.

Can I transfer my existing home loan to LIC Housing Finance?

Yes, LIC Housing Finance offers home loan balance transfer facility with better interest rates and top-up loan option.

Can I transfer my existing loan against property to LIC Housing Finance?

Yes, LIC Housing Finance offers balance transfer for loan against property.

What documents are needed for LIC Housing Finance home loan?

KYC documents, salary slips or ITR, bank statements, and property documents including sale agreement and title deed.

What documents are needed for LIC Housing Finance loan against property?

KYC documents, income proof, and property documents including original title deed, tax receipts, and encumbrance certificate.

How long does LIC Housing Finance home loan approval take?

LIC Housing Finance home loan approval typically takes 7 to 15 days from application to disbursement.

How long does LIC Housing Finance loan against property approval take?

Loan against property also takes 7 to 15 days.

Can NRIs get LIC Housing Finance home loan?

Yes, LIC Housing Finance offers home loans to NRIs with slightly higher interest rates.

Can NRIs get LIC Housing Finance loan against property?

Yes, NRIs can get loan against property on property they own in India under RBI FEMA guidelines.

What is LIC HFL MaxGain home loan?

LIC HFL MaxGain is an overdraft facility where you can deposit surplus funds to reduce interest burden.

What is the difference between LIC Housing Finance home loan and LIC Housing Finance loan against property?

Home loan is for buying a new house. Loan against property is for funds against an existing property. Home loan has lower rates, longer tenure, and tax benefits.

How can I get the lowest interest rate from LIC Housing Finance?

Maintain CIBIL above 750, apply for smaller loan amount, choose shorter tenure, add a co applicant with good credit, and negotiate with the bank manager.

Conclusion

Choosing between LIC Housing Finance home loan and LIC Housing Finance loan against property depends on your situation. If you want to buy your first home or upgrade to a better house, LIC Housing Finance home loan is the right choice with low interest rates starting from 8.75%, up to 30 years tenure, and tax benefits.

If you already own a property and need funds for business, education, wedding, or medical expenses, LIC Housing Finance loan against property is the better option. You can get up to seventy percent of your propertys value with no restriction on end use.

Before applying, check your CIBIL score. If below 750, spend time improving it. Compare interest rates and processing fees across lenders. Read your loan agreement carefully. Borrow only what you truly need. Make your EMIs on time every month.

Visit BankerMart for more tools and comparisons including home loan eligibility calculator, EMI calculator, and best bank comparison page. Make an informed decision. Save your hard earned money.

LIC Housing Home Loan @ 7.20% p.a.