LIC HFL home loan interest rate cut:
LIC Housing Finance Limited (LIC HFL) has given good news for home loan borrowers. The company has reduced its home loan interest rates by 0.25%. Now, the new interest rate for home loans starts at just 8%. This change will help both new and existing borrowers save money.

LIC HFL home loan interest rate cut:
This decision comes after the Reserve Bank of India (RBI) reduced the repo rate by 0.25% on April 9, 2025. The repo rate is the rate at which the RBI lends money to banks. When the repo rate goes down, banks and financial institutions can also reduce their loan interest rates. LIC HFL has followed this move and updated its benchmark rate accordingly.

There are two types of home loans: fixed rate and floating rate. In fixed rate loans, the interest stays the same for the whole loan period. In floating rate loans, the interest changes based on market conditions and the benchmark rate. The recent rate cut mainly benefits people who have floating rate loans because their interest will now be lower.

Experts say that floating rate loans are usually cheaper than fixed rate loans. While fixed rate loans can be 1% to 2.5% higher, floating rates go up or down depending on the economy. So, when benchmark rates fall, borrowers pay less interest.

This step by LIC HFL makes home loans more affordable. Many families in India dream of owning a home. To achieve this, they often save money and take loans. A lower interest rate means smaller EMIs (monthly payments), making it easier for people to repay their loans.

The new rates have been in effect since April 28, 2025. This move is expected to bring relief to many Indian families planning to build or buy their own house.

If you’re thinking of taking a home loan, now might be a good time. Lower interest rates can save you a lot of money in the long run.

Also Read: New Rules for Cab Policy 2025: Compensation For Cancelled Rides?

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