The rate reduction applies to new home loan sanctions and comes at a time when homebuyers are reassessing purchase decisions amid changing borrowing costs. Housing finance companies and banks have been gradually passing on the benefit of cumulative repo rate cuts announced during the year to support credit demand in the housing sector.
Commenting on the broader interest rate environment, LIC Housing Finance’s Managing Director and Chief Executive Officer, Tribhuwan Adhikari, said that the RBI reduced the repo rate by a total of 125 basis points during the year, providing some relief to borrowers. He added that the lower rate environment could help improve confidence among first-time homebuyers as the market moves into 2026.
Interest rates on home loans typically vary based on borrower profile, loan amount, tenure, and credit score. Analysts note that while lower lending rates can ease EMI burdens, overall housing demand will also depend on factors such as property prices, income growth, and broader economic conditions.
LIC Housing Finance is one of India’s largest housing finance companies, with a nationwide presence and overseas operations through a representative office in Dubai.
