# LIC HFL Raises Home Loan Rates by 0.25% from 31 October 2026: New Rates and Why

Source: https://hyderabadhomeloans.com/2026/10/31/lic-hfl-rate-hike-31-october-2026/ · Updated 31 Oct 2026

**Quick answer:** LIC Housing Finance raised its home loan interest rates by 0.25% (25 basis points) from **31 October 2026**. Salaried and professional borrowers with a CIBIL score of 825 or more now start at **7.40%** (was 7.15%), and self-employed borrowers at **7.55%** (was 7.30%), on loans up to ₹5 crore. The reason is the RBI’s 25 basis point repo rate hike on 7 October 2026: LIC HFL has revised its benchmark (LHPLR) for housing loans to 17.15%.

*By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Rates from LIC HFL’s revised rate card effective 31 October 2026; LHPLR checked on lichousing.com on 31 October 2026.*

## What changed on 31 October 2026

- **Every home loan rate is 0.25% higher.** The increase applies to every CIBIL band and loan slab in LIC HFL’s home loan (Griha Prakash) rate card, for salaried and self-employed borrowers alike.
- **New starting rates:** 7.40% for salaried and professional borrowers and 7.55% for self-employed borrowers (CIBIL 825+, loans up to ₹5 crore). For loans above ₹5 crore and up to ₹15 crore: 7.70% and 7.85%.
- **Plot loans (Griha Bhoomi)** now start at 7.60% for salaried borrowers (was 7.35%) and 7.75% for self-employed borrowers.
- **Other housing schemes moved up too:** Griha Suvidha now starts at 7.65% (was 7.40%), and Griha Sugam is 11.00% with mortgage guarantee cover (IMGC) and 11.25% without (was 10.75%–11.00%).
- **LIC HFL’s benchmark, LHPLR,** is now 17.15% for housing loans and 17.25% for non-housing loans, effective 31 October 2026.

## Why LIC HFL raised rates: the RBI’s repo rate hike

On 7 October 2026 the Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points, from 5.25% to 5.50%. It was the RBI’s first rate hike since 2023, and the vote was unanimous. The committee also changed its stance from neutral to “calibrated tightening”.

The reason was inflation. Retail (CPI) inflation rose to 4.8% in August 2026 from 4.5% in July, mainly because of food and fuel prices, and the RBI listed crude oil prices, a weak monsoon, El Niño and global tensions as risks. It now expects CPI inflation of 5.2% for 2026–27, and said rate cuts are off the table in the near term.

### How a repo hike reaches an LIC HFL home loan

LIC HFL is a housing finance company, so its floating rates are not linked to the repo rate directly. They are linked to its own benchmark, the LIC Housing Prime Lending Rate (LHPLR). A repo hike raises borrowing costs across the financial system, including for lenders like LIC HFL that raise money from banks and bond markets. LIC HFL passed on the RBI’s 0.25% by revising its LHPLR from 31 October 2026, so its home loan rates rose by the same 0.25%.

When the RBI moved, we wrote that lenders often revise rates in the weeks after a repo change: see [LIC HFL home loan rates in October 2026](https://hyderabadhomeloans.com/2026/10/09/lic-hfl-home-loan-rates-october-2026/). LIC HFL’s change came 24 days after the RBI’s.

## New LIC HFL home loan rates by CIBIL score (from 31 October 2026)

Loans up to ₹1 crore unless shown otherwise. Floating rates, linked to LHPLR.

| CIBIL score | Salaried & professional | Self-employed |
| --- | --- | --- |
| 825 and above (loans up to ₹5 crore) | **7.40%** (was 7.15%) | **7.55%** (was 7.30%) |
| 800–824 (up to ₹5 crore) | **7.60%** (was 7.35%) | **7.75%** (was 7.50%) |
| 775–799 | **7.75%** (was 7.50%) | **7.90%** (was 7.65%) |
| 750–774 | **7.85%** (was 7.60%) | **8.00%** (was 7.75%) |
| 725–749 | **8.05%** (was 7.80%) | **8.20%** (was 7.95%) |
| 700–724 | **8.35%** (was 8.10%) | **8.60%** (was 8.35%) |
| 600–699 | **9.15%** (was 8.90%) | **9.40%** (was 9.15%) |
| 201–599 | **9.95%** (was 9.70%) | **10.10%** (was 9.85%) |
| 150–200, new to credit (up to ₹35 lakh) | **8.05%** (was 7.80%) | **8.20%** (was 7.95%) |
| 101–149, new to credit (up to ₹35 lakh) | **8.35%** (was 8.10%) | **8.60%** (was 8.35%) |

Larger loans carry slightly higher rates. The full table, including the ₹1–5 crore and ₹5–15 crore slabs, is in our [LIC HFL home loan interest rates guide](https://hyderabadhomeloans.com/2026/09/29/lic-hfl-home-loan-interest-rates/). If two of you apply together, LIC HFL uses the higher of your CIBIL scores; see [the CIBIL score you need for the best rate](https://hyderabadhomeloans.com/2023/07/01/minimum-cibil-score-requirement-for-home-loans-lic-housing-finance-2023/).

## What 0.25% does to your EMI

For a new 20-year loan at the best rate for salaried borrowers:

| Loan | EMI at 7.15% | EMI at 7.40% | Extra per month | Extra over 20 years |
| --- | --- | --- | --- | --- |
| ₹30 lakh | ₹23,530 | ₹23,985 | +₹455 | +₹1.09 lakh |
| ₹50 lakh | ₹39,216 | ₹39,974 | +₹758 | +₹1.82 lakh |
| ₹75 lakh | ₹58,825 | ₹59,962 | +₹1,137 | +₹2.73 lakh |
| ₹1 crore | ₹78,433 | ₹79,949 | +₹1,516 | +₹3.64 lakh |

- Each ₹1 lakh of a 20-year loan now costs about ₹799 a month, ₹15 more than before. Over 30 years it is about ₹692, ₹17 more.
- Keeping the EMI unchanged instead would stretch a new ₹50 lakh, 20-year loan by about 11 months.
- The loan a given salary supports falls by roughly 2% (about 1.9% over 20 years and 2.5% over 30 years).

Try your own numbers in the [LIC home loan EMI calculator](https://hyderabadhomeloans.com/emi-calculator/), which now uses 7.40%.

## If you already have an LIC HFL home loan

- **Floating-rate loans follow LHPLR.** If your loan is on a floating rate linked to LHPLR, the revision flows into your rate. Expect a communication from LIC HFL about your revised rate and EMI.
- **You choose: higher EMI or longer tenure.** Under the RBI’s rules on resetting floating rates, lenders must let you choose between a higher EMI, a longer tenure or a mix of both, and let you prepay. Which suits you: [increase your EMI or your tenure?](https://hyderabadhomeloans.com/2026/10/18/repo-rate-hike-increase-emi-or-tenure/)
- **Prepay if you can.** A part-prepayment cuts both the interest and the effect of the hike, and there is no charge for prepaying a floating-rate home loan taken by an individual. See the [prepayment calculator](https://hyderabadhomeloans.com/home-loan-prepayment-calculator/).
- **Want certainty?** LIC HFL’s [Sure Fixed scheme](https://hyderabadhomeloans.com/sure-fixed-home-loan-scheme/) is 10.00% for CIBIL 750+ (10.25% below 750), fixed for the entire term. It costs more today, but later rate hikes cannot touch it.

## If you are about to take a home loan

- **Your CIBIL score matters more than the hike.** The gap between the 825+ band and the 750–774 band is 0.45%, almost double the hike.
- **Sanctioned but not yet disbursed?** Ask us which rate applies to your file before you sign.
- **Approved projects still save money.** Home loans in LIC HFL approved projects get a special processing fee discount and no legal and technical fee; see the [LIC HFL approved projects in Hyderabad](https://hyderabadhomeloans.com/list-of-approved-projects/).
- **Recheck your eligibility.** A 0.25% rise lowers the loan a given salary supports by about 2%. Our [free eligibility check](https://hyderabadhomeloans.com/free-eligibility-check/) uses the new rates.

[Check my eligibility at the new rate](https://wa.me/918886249998?text=Hi%2C%20LIC%20HFL%20rates%20changed%20on%2031%20October%202026.%20Please%20check%20my%20home%20loan%20eligibility%20at%20the%20new%20rate.)

## Frequently asked questions

### Why did LIC HFL increase its home loan interest rate?

Because the RBI raised the repo rate by 25 basis points to 5.50% on 7 October 2026 to contain inflation. LIC HFL followed by revising its LHPLR from 31 October 2026, which raised its home loan rates by 0.25%.

### What is the LIC HFL home loan interest rate now?

From 31 October 2026: 7.40% for salaried and professional borrowers and 7.55% for self-employed borrowers with a CIBIL score of 825 or above, on loans up to ₹5 crore. Lower scores and larger loans pay more; see the table above.

### What is LHPLR?

The LIC Housing Prime Lending Rate, LIC HFL’s own benchmark for floating-rate loans. From 31 October 2026 it is 17.15% for housing loans and 17.25% for non-housing loans. Floating rates are linked to it, so when LHPLR moves, they move by the same amount.

### Will my existing LIC HFL EMI go up?

If your loan is on a floating rate linked to LHPLR, your interest rate rises by 0.25%. Depending on the option you choose, your EMI goes up or your tenure gets longer, and you can prepay without charges. See [whether to increase your EMI or tenure](https://hyderabadhomeloans.com/2026/10/18/repo-rate-hike-increase-emi-or-tenure/).

### Will LIC HFL rates come down again soon?

Not likely in the near term. In its October 2026 policy the RBI said rate cuts are off the table for now and that its next move would be a hike or a pause.

### Did plot loan rates also go up?

Yes. LIC HFL plot loans (Griha Bhoomi) now start at 7.60% for salaried borrowers and 7.75% for self-employed borrowers with a CIBIL score of 825 or above. See [plot loans in Hyderabad](https://hyderabadhomeloans.com/plot-loan-in-hyderabad/).

*Sources: LIC HFL’s revised rate card (ROI updated as on 31.10.2026); lichousing.com, LHPLR for Retail Loans (17.15% housing and 17.25% non-housing, w.e.f. 31.10.2026), checked 31 October 2026; RBI Monetary Policy Statement of 7 October 2026, as reported by Business Today and SCC Online; RBI circular on reset of floating interest rates on EMI-based loans, 18 August 2023.*

*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.*

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Hyderabad Home Loans — authorised DSA of LIC Housing Finance Ltd since 2002. Free eligibility check: https://hyderabadhomeloans.com/. Phone / WhatsApp +91-8886249998.