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Home Loan Boost LIC HFL Reduces Rates Aids Pensioners

Apr 21 2026

Home Loan Boost LIC HFL Reduces Rates Aids Pensioners

Home loan borrowers have received major relief as interest rates have been reduced to their lowest levels in recent times. New borrowers with strong credit profiles can now avail housing loans at an interest rate as low as 6.90 percent, making home ownership more affordable than ever. According to the announcement, individuals seeking a home loan of up to Rs 50 lakh are eligible for this reduced rate, provided they maintain a credit score of 700 or above. For borrowers opting for loan amounts exceeding Rs 50 lakh, interest rates start from 7 percent, subject to similar credit score requirements. This reduction marks the lowest home loan interest rate ever offered under such schemes, significantly lowering monthly EMIs and easing the financial burden on borrowers. Earlier this year, home loan rates were higher and were available only to borrowers with exceptionally high credit scores. The current revision makes competitive rates accessible to a wider group of customers. The decline in lending rates follows a series of policy rate cuts introduced since March 2020, which have reduced borrowing costs across the financial system. With the cost of funds currently hovering around 5.6 percent, lenders are able to pass on the benefit to customers through lower interest rates. In addition to rate cuts, a special housing loan scheme has been introduced for senior citizens receiving pensions. Under this scheme, the maximum loan tenure can extend up to 80 years of age or 30 years, whichever is earlier. This initiative is designed to support retired and serving employees from government bodies, public sector organizations, banks, defense services, railways, and similar institutions. To further enhance loan eligibility, pensioners are allowed to apply jointly with their children, provided the co-applicant is an income tax return filer. This joint application feature helps improve approval chances and allows senior citizens to access higher loan amounts. Overall, the reduction in interest rates and the launch of pensioner-focused housing finance products are expected to boost home buying sentiment, improve affordability, and provide long-term financial relief to both new borrowers and senior citizens. 

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