LIC Housing Finance advertises a home loan from 7.15% p.a. onwards and can charge up to 10.15% for the same product. It is a housing finance company rather than a bank, and that changes how the rate behaves: it is not required to price off an external benchmark, so it lends against an internal reference rate and historically passes rate cuts through more slowly than increases.
Rate, maximum and fees
| Advertised rate | Maximum rate | Terms | Fee |
|---|---|---|---|
| 7.15% | 10.15% | LHPLR-linked | Flat ₹3,000–₹50,000 + GST, by loan size |
Updated 17 Sep 2026 · Lender rate pages, checked individually.
The 0.25% cap on the processing fee is among the lowest of the lenders we track, which partly offsets the slower rate transmission. Read the fee together with the rate, not separately: where a fee is quoted without tax, add 18% GST to get what you actually pay. The full list is on LIC Housing Finance home loan fees and charges.
What that costs in rupees
On ₹50,00,000 over 20 years, principal and interest only:
| EMI at 7.15% | ₹39,216 a month |
|---|---|
| Total interest at 7.15% | ₹44,11,939 |
| EMI at the 10.15% maximum | ₹48,749 a month |
| Extra interest at the maximum rate | ₹22,87,831 |
Principal and interest only. Processing fee, GST, documentation and any insurance sold alongside the loan are additional.
That last row is the point of the page. The difference between the advertised floor and the published ceiling on this one loan is over ₹22 lakh, which is why a headline rate on its own tells you almost nothing. Run your own figures through the EMI calculator at the amount and tenure you will actually borrow before you treat 7.15% as your rate.
How it compares
LIC Housing Finance is the joint cheapest of the 12 providers we track — level on the advertised floor with Canara Bank and Union Bank of India at 7.15%, and 0.05% below Bank of Baroda at 7.20%, though its ceiling is higher than all three. The maximum tenure is 30 years. The full ranking is in our table of home loan interest rates.
What moves this rate
The advertised rate is a starting point, not an offer. It goes to the strongest applicants: a high credit score, a big down payment and usually a salaried job at an approved employer. The maximum in the table above is the lender’s own upper limit, and where you land between the two is set by your credit profile rather than by negotiation. The tier you are quoted is decided before you walk in, so the useful work happens earlier — see how to improve your credit score.
The detailed rate breakdown sits on LIC Housing Finance’s home loan interest rate page.
Terms change without notice. Confirm the current figures with LIC Housing Finance before you act.