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LIC home loan interest rates in 2023

LIC home loan interest rates in 2023

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LIC home loan interest rates in 2023

LIC home loan interest rates in 2023
LIC home loan interest rates in 2023


Life Insurance Corporation of India (LIC) is one of the leading providers of home loans in India. LIC offers home loans at competitive interest rates to individual borrowers. In this article, we will look at the latest LIC home loan interest rates for 2023 and other key details regarding LIC home loans.

LIC home loan interest rates in 2023

  • For the financial year 2023, LIC has announced home loan interest rates starting from 8.00% per annum for loans up to Rs. 30 lakhs.
  • For loans above Rs. 30 lakhs, interest rates start from 8.25% per annum.
  • These rates are linked to LIC’s Reference Rate, which is currently 8.00%.
  • An additional interest rebate of 0.25% is provided for women borrowers.

Factors Affecting LIC Home Loan Interest Rate

The exact interest rate offered to a borrower will depend on certain factors like:

  • Applicant’s credit score and profile
  • Loan amount and tenure chosen
  • Property location and type
  • Income stability and job profile
  • LIC’s internal risk assessment of the borrower

Borrowers with higher creditworthiness may be offered a lower rate within the range.

Interest Rate Comparison with Banks

  • LIC home loan rates are very competitive compared to leading banks.
  • For instance, SBI home loan rates start from 8.15% and can go up to 9.05% based on loan amount and credit score.
  • Similarly, HDFC home loan rates range from 8.75% to 9.05% based on eligibility.
  • Thus, LIC offers among the lowest interest rates in the home loan market currently.

Processing Fees and Other Charges

  • LIC charges a processing fee of 0.5% of the loan amount + applicable GST.
  • Pre-payment charges are levied at 2% of principal outstanding if the loan is closed within 2 years.
  • No prepayment charges apply if the loan tenor completed is 2 years or more.
  • LIC also charges administrative fees, technical valuation charges, legal fees etc. as applicable.

Loan Tenure Options

  • LIC provides loans for a period of 5 years to 30 years.
  • Longer loan tenures of up to 30 years help reduce the EMI burden on borrowers.
  • However, longer tenures also mean higher interest outgo over the full loan period.
  • Borrowers should evaluate their repayment capacity and choose the tenure wisely.

Loan Amounts Available

  • Minimum: Rs. 20 lakhs
  • Maximum: Rs. 3 crores
  • Loans above Rs. 1 crore may require higher collateral and have different eligibility norms.
  • The maximum loan amount is capped at up to 90% of property value.

Eligibility Criteria

Some key eligibility norms for LIC home loans are:

  • Minimum age of applicants: 21 years
  • Maximum age at loan maturity: 70 years
  • Salaried applicants should have at least 3 years of job experience
  • Self-employed should have at least 5 years in same business
  • Co-applicants allowed to jointly apply for higher loan eligibility

How to Apply

LIC offers an easy application process for home loans:

  • Online application through LIC website
  • Through LIC advisors or agents
  • Directly at nearest LIC branch

Documents like KYC, income proof, property documents etc. are required. LIC will undertake technical evaluation and legal verification before approving the loan.

Repayment Options

Borrowers can choose between:

  • Equated Monthly Installment (EMI)
  • Overdraft against property
  • Combination of EMI and overdraft

EMI ensures disciplined repayments. Overdraft allows flexibility of drawing as per requirement.

Advantages of LIC Home Loan

Some of the major benefits of availing LIC home loan include:

  • Competitive interest rates
  • Nil prepayment charges after 2 years
  • Loans up to 90% of property value
  • Minimal processing fees
  • Loans for self-construction also available
  • Repayment tenure up to 30 years
  • Option to transfer loan facility to another property


What is the current interest rate on LIC home loan?

For FY 2023, LIC home loans have interest rates starting from 8.00% p.a. for loans up to Rs. 30 lakhs. For higher loan amounts above Rs. 30 lakhs, rates start from 8.25% p.a.

Is there any benefit for women borrowers?

Yes, LIC provides a concession of 0.25% on interest rates for loans availed by women borrowers.

What is the minimum loan amount I can get?

You can avail a minimum home loan of Rs. 20 lakhs from LIC.

What are the charges apart from interest?

LIC charges a one-time processing fee of 0.5% of loan amount plus applicable GST. Other charges like technical valuation fee, legal charges, admin fees may also apply.

How long can the repayment period be?

LIC offers a flexible repayment period of 5 to 30 years for its home loans.

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