LIC HFL Home Loan Interest Rates October 2026: Will the RBI Hike Raise Your EMI?

By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002. Updated 31 October 2026 with LIC HFL’s revised rates (first published 9 October 2026).

What are LIC HFL home loan interest rates in October 2026?

These are LIC HFL’s published floating rates for new home loans, as shown on lichousing.com on 9 October 2026. Your rate depends mainly on your CIBIL score and loan amount. For joint applicants, LIC HFL uses the highest CIBIL score among the applicants.

Loans above ₹1 crore (and above ₹5 crore) carry slightly higher rates in most bands. LIC HFL also lists separate rates for applicants with a new or thin credit history (score bands 101–200); for example 7.80% for salaried applicants in the 150–200 band on loans up to ₹35 lakh. See the full table in our LIC HFL home loan interest rates guide.

Did the RBI repo rate hike in October 2026 change LIC HFL rates?

Yes, from 31 October 2026. The RBI’s Monetary Policy Committee raised the repo rate by 25 basis points, from 5.25% to 5.50%, on 7 October 2026, and LIC HFL raised its home loan rates by the same 0.25% from 31 October 2026.

LIC HFL is a housing finance company, so its floating rates follow its own benchmark (LHPLR) rather than the repo rate directly. It revised its LHPLR for housing loans to 17.15% from 31 October 2026, which moved every home loan rate up by 0.25%. Why it happened and what it means for you: LIC HFL’s 0.25% rate hike, explained.

How much does the 0.25% rise add to my EMI?

On a ₹50 lakh loan over 20 years, a rise from 7.15% to 7.40% adds about ₹758 a month, or about ₹1.8 lakh over the full term.

If you already have a floating-rate loan, lenders often keep your EMI the same and extend the term instead. On a ₹50 lakh, 20-year loan, a 0.25% rise with the same EMI adds about 11 months to the loan. Check your own numbers with our EMI calculator. Keeping the same EMI costs more interest than raising it: see whether to increase your EMI or tenure.

How much does my CIBIL score change my EMI?

More than a repo rate change. On a ₹50 lakh, 20-year salaried home loan:

Moving from the 700–724 band to 825+ saves about ₹2,900 a month and ₹7 lakh in interest. If your score is low, read how to get a home loan with a low CIBIL score before you apply.

What should you do this month?

• Buying soon: get your eligibility checked and apply at the new rates (from 7.40%); a CIBIL score of 825+ still gets the best one. Approved projects can also qualify for processing-fee discounts; see the list of LIC HFL approved projects.
• Paying 8.5% or more elsewhere: compare a balance transfer to LIC HFL; use the balance transfer calculator to see the saving.
• Existing LIC HFL borrower: part-prepayments on floating-rate home loans carry no charges, and they offset a rate rise. Try the prepayment calculator.
• Buying a plot or constructing: If you plan to buy land and build within 3 years, lock in your rate with an LIC HFL plot and construction (composite) loan, and review our breakdown of construction cost per sq ft in Hyderabad.

Related guides: Comparing lenders? See LIC Housing Finance vs SBI home loan. Exploring self-construction? Read our complete guides on the plot and construction composite loan and current Hyderabad house construction costs.

Frequently asked questions

What is the lowest LIC HFL home loan rate in October 2026?

7.40% p.a. from 31 October 2026 (7.15% until 30 October), for salaried or professional applicants with a CIBIL score of 825 or more, on loans up to ₹5 crore.

Will my existing LIC HFL EMI go up after the repo hike?

Yes, if your loan is on a floating rate linked to LHPLR. LIC HFL raised its LHPLR from 31 October 2026, so the rate rises by 0.25%. The change is usually absorbed by extending the term first, and you can choose a higher EMI instead. For your own loan, check the customer portal on lichousing.com or call LIC HFL on 1800 209 1989.

Is the self-employed rate higher?

Yes, by 0.15% to 0.25% in most bands. For example, 7.55% instead of 7.40% for CIBIL 825+.

Does LIC HFL charge for prepaying a home loan?

No prepayment charges apply on floating-rate home loans to individuals, unless the loan is for business purposes (LIC HFL FAQ).

Next step: find out which rate band you fall into and how much you can borrow with a free eligibility check, or read our LIC HFL home loan in Hyderabad guide.

Sources: LIC HFL’s revised rate card (ROI updated as on 31.10.2026) and LHPLR page on lichousing.com (17.15% for housing loans w.e.f. 31.10.2026); lichousing.com home loan page (earlier rates, checked 9 Oct 2026); RBI Monetary Policy Statement, 7 October 2026 (rbi.org.in); LIC HFL housing loan FAQ.

Hyderabad Home Loans is run by Elite Financial Services, an authorised Direct Selling Agent (DSA) of LIC Housing Finance Ltd. We are not LIC HFL. Loans are sanctioned solely at LIC HFL’s discretion; rates and fees may change.