🇮🇳 India

LIC Housing Finance Last updated2026-05-28

LIC Housing Finance EMI Calculator 2026 rates.

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Quick answer

LIC Housing Finance home loan rate starts at 8.5% (typical 9%) as of 2026. A ₹50 lakh loan at 9% over 20 years = an EMI of approximately ₹44,986/month.

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EMI Calculator

Live

Loan Amount

₹

₹25.00 L

Interest Rate (p.a.)

Tenure (years)

Monthly EMI

₹21,696

/month

Total Interest

₹27.07 L

52% of total

Total Payable

₹52.07 L

over 20 years

Principal vs Interest Split

48% principal

52% interest

✨ Live · For home, personal, auto, education loans · Excludes processing fees

📊 Current rates

LIC Housing Finance loan rates (May 2026)

🏠 Home Loan

8.5–11.5%

typical: 9% p.a.

💵 Personal Loan

12–18%

typical: 13.5% p.a.

🚗 Car Loan

9.5–13%

typical: 10.5% p.a.

💳 Processing Fee

0.25-0.50% of loan amount (min ₹3,000, max ₹15,000) for home loans. Frequent festive-season fee waivers and rate concessions for women borrowers and salaried applicants.

🔁 Prepayment

Zero foreclosure/prepayment charges on floating-rate home loans for individual borrowers (RBI mandate). Fixed-rate or non-individual loans attract 2% prepayment penalty.

About LIC Housing Finance

Why choose LIC Housing Finance?

LIC Housing Finance, incorporated in 1989 and promoted by Life Insurance Corporation of India, is the second-largest HFC in India after the HDFC Ltd-HDFC Bank merger absorbed the erstwhile #1. The company has an outstanding loan book of approximately ₹2.9 lakh crore as of FY26, with home loans contributing nearly 80%. LICHFL operates through 280+ marketing offices and 25+ back-office processing centres, with particularly deep penetration in Tier-2 and Tier-3 towns across Maharashtra, Gujarat, Tamil Nadu, Telangana, and Uttar Pradesh. Backed by LIC's 40%+ shareholding, it enjoys AAA credit ratings from CRISIL and CARE, allowing it to borrow at near-bank rates from the bond market.

🎯 Unique angle

LIC Housing Finance is the only HFC with the implicit sovereign-adjacent comfort of LIC parentage, which lets it price aggressively close to PSU banks while specializing in mass-market and affordable home loans down to ₹5 lakh ticket sizes. It is particularly strong among salaried PSU and government employees who already hold LIC insurance policies, with cross-sell tie-ups that few competitors can match.

Product highlights

✓ Griha Varishtha — home loan for senior citizens and pensioners
✓ Griha Suvidha — top-up loan against existing LICHFL home loan
✓ Home Loan for NRIs — dedicated NRI desk with rupee/foreign-income underwriting
✓ Plot Loan + Construction Loan combo
✓ Griha Setu — home loan balance transfer with top-up

❓ LIC Housing Finance FAQ

Common questions.

How is LIC Housing Finance different from a commercial bank home loan?

LICHFL is a dedicated HFC regulated by the National Housing Bank (now under RBI supervision post-2019), not a universal bank. It cannot offer savings accounts, credit cards, or current accounts, but specializes exclusively in housing finance — which means deeper underwriting flexibility on self-employed and informal-income borrowers, faster sanctions in Tier-2/3 towns, and longer-tenure products (up to 30 years) than most banks. Rates are typically 25-50 bps higher than SBI/HDFC Bank but with lower paperwork friction.

Who is the ideal LIC Housing Finance borrower?

LICHFL is best suited for salaried government/PSU employees, LIC policyholders, pensioners under the Griha Varishtha scheme, and mass-affluent self-employed professionals in Tier-2/3 cities. Borrowers seeking ₹15 lakh-₹75 lakh tickets in non-metro locations often find LICHFL faster and more flexible than large private banks.

Is LIC Housing Finance safe given it is not a bank?

Yes — LICHFL is AAA-rated by CRISIL and CARE, has LIC (a sovereign-owned insurer) as its largest shareholder with 40%+ stake, and is regulated by RBI/NHB. It has been listed on BSE/NSE since 1994 and has never defaulted on any debt obligation. Customer home loan accounts are also fully secured by mortgage of the underlying property, so HFC solvency risk does not affect the customer's ownership.

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