LIC Housing Finance cuts home loan interest rates, who will get the benefit?

Good news for those looking to buy homes or flats at year-end. LIC Housing Finance has announced a reduction in interest rates for home loans. The financial institution's home loan starting rate is now 7.15%. The interest rate will depend on the borrower's CIBIL score.

Individuals with a CIBIL score of 825 or above will receive special benefits on interest rates. This means they will get the lowest interest rate facility for home loans (up to ₹5 crore). According to an Economic Times report, individuals with good credit profiles – those who have a history of taking loans and repaying them on time – will receive some benefits on home loan interest rates.

What is a CIBIL score?

This score reveals an individual's 'credit history'. It clarifies various aspects, such as how much loan a person can take and whether they will be able to repay it if they take a loan. Many such matters become clear from CIBIL.

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What interest rate for which CIBIL score?

825 or above:

Up to ₹5 crore: 7.15%

₹5-15 crore: 7.45%

800-824:

Up to ₹5 crore: 7.25%

₹5-15 crore: 7.55%

775-799:

Up to ₹50 lakh: 7.35%

₹50 lakh to ₹2 crore: 7.45%

₹2-15 crore: 7.65%