LIC Housing Finance Fixed Deposit Rates 2025
LIC Housing Finance Limited (LIC HFL), one of the biggest housing finance companies in India, offers a number of Fixed Deposit schemes to suit the needs of every type of investor. LIC Housing Finance FD is offered under the Sanchay scheme. The interest rate ranges from 6.60% p.a. to 6.90% p.a.
LIC offers competitive interest rates and a good rate of return on the overall investment, among other benefits. This is a public deposit scheme that was launched in 2007 that is rated FAAA/Stable by CRISIL.
At present, the highest rate of interest paid on LIC HFL FDs is 6.90% p.a. for the general public yearly option of cumulative and 6.90% p.a. for non-cumulative term deposits held for a tenure of 5 years for deposits less than Rs.20 crore.
LIC HFC Public Deposit Scheme: Less than Rs.20 crore and more than Rs.20 crore
Cumulative Public Deposit
Term | Up to Rs.3 Crore | Above Rs.3 Crore |
1 year | 6.70% p.a. | 6.60% p.a. |
15 months | 6.75% p.a. | 6.65% p.a. |
18 months | 6.75% p.a. | 6.65% p.a. |
2 years | 6.80% p.a. | 6.80% p.a. |
3 years | 6.85% p.a. | 6.85% p.a. |
5 years | 6.90% p.a. | 6.90% p.a. |
Note: The interest rates are applicable w.e.f. 19 June 2025
Non-Cumulative Public Deposit
Term | Up to Rs.3 Crores Yearly | Above Rs.3 Crore Yearly |
1 year | 6.70% | 6.60% |
15 months | 6.75% | 6.65% |
18 months | 6.75% | 6.65% |
2 years | 6.80% | 6.80% |
3 years | 6.85% | 6.85% |
5 years | 6.90% | 6.90% |
Note: The interest rates are applicable w.e.f. 19 June 2025
LIC Housing Finance Corporate FD Rates
Term | Up to Rs.5 Crore (Cumulative/Non-Cumulative yearly option) | Above Rs.5 crore- Rs.10 Crore (Cumulative/ Non-Cumulative yearly option) | Above Rs.10 Crore- Rs.20 Crore (Cumulative/ Non-Cumulative yearly option) |
1 Year | 6.60% | 6.65% | 6.70% |
15 Months | 6.65% | 6.70% | 6.75% |
18 Months | 6.65% | 6.70% | 6.75% |
2 Years | 6.80% | 6.80% | 6.80% |
3 Years | 6.80% | 6.80% | 6.80% |
5 Years | 6.80% | 6.80% | 6.80% |
Note: The interest rates are applicable w.e.f. 19 June 2025
Features of LIC FD Rates
- The minimum amount of deposit for monthly option is Rs.2 lakh.
- The minimum amount of deposit for yearly option is Rs.10,000.
- Additional deposits can be made in the multiples of Rs.10,000 for monthly deposits and Rs.1,000 for yearly deposits.
- The interest rate for senior citizens is an additional 0.25% of deposits from Rs.20,000 to less than Rs.2 crore.
- Nomination facility available
- Automatic renewal option after maturity
- Part withdrawal facility on the deposits
- Availability of loan
LIC Housing Finance FD Sanchay Scheme
- SANCHAY is the Public Deposit scheme by LIC Housing Finance Limited. The company started to accept deposits from May 2007.
- The deposit can be made by HUF, Limited and Private Limited Companies, Resident Individuals, NRI, Association of Persons, and Co-operative Societies.
- The minimum amount you can invest is Rs.20,000 (yearly option)
- You can open the FD for duration of 1 year, 18 months, 2 years, 3 years and 5 years.
- The deposit can be placed under Cumulative and Non-Cumulative options.
- Deposits will be accepted in joint names not more than three
- NRIs can open a deposit for 3 years.
- The interest will be paid on an annual basis.
How to Open an FD with LIC Housing Finance
- Individual
- Joint account Minor with a guardian
- Partnership
- Company
- Any association or Institute
- NRIs
Documents Needed to Open an LIC FD
- Application Form
- Depositor's photograph (2 copies)
- Identity proof & Address proof as per KYC Norms
- PAN Card copy/ Form 60 or 61
- Aadhaar Card
LIC Housing Finance Fixed Deposit Rates - Premature Withdrawal
Withdrawal can be made on completion of 3 months after the commencement of FD
Period completed | Rate of Interest (p.a.) |
3 months but less than 6 months | 3% p.a. |
6 months but before maturity | 1% less than the applicable FD rate |
For 6 months but before maturity:
If the interest rate is not prescribed for a period, then the interest payable will be 2% lower than the lowest rate at which the public deposits are being accepted.
Loan Against LIC Housing Finance Fixed Deposit
- You can get a loan against your deposit up to 75% of the deposit amount and the interest will be 2% p.a, (annual) above the interest rate of the deposit. The deposits have to be for a minimum period of 3 months.
- The outstanding loan with the interest can be settled in one go or can be adjusted against the maturity value.
- The facility is not available for the deposit in the name of minors and NRI.
LIC FD Interest Calculation Guide
It is very easy to calculate the interest that you will earn out of your LIC HFL FD. This can be done before you apply for the term deposit to know how much you will earn from the investment. There are many factors that you have to take into account to calculate LIC HFL FD interest rate.
Factors Affecting LIC Housing Finance FD Maturity
- The amount/principal invested - The deposit amount is a very crucial and significant factor that impacts the total value of your investment. Generally, the higher the investment amount, the more you will earn out of it.
- Rate of interest - The interest rate offered by the company is also a major factor that affects the total interest that is earned on a particular deposit. In most cases, the interest rate is directly proportional to the tenure range.
- Tenure of deposit - As far as LIC HFL is concerned, they pay more for those investing in longer tenure FDs.
- Interest computation frequency - How the interest is computed on a certain FD determines how much money you will eventually make out of it after the maturity period.
- Taxation - The amount of Tax Deducted at Source (TDS) also has an impact on the total interest income that you will earn from the investment that you make in an FD.
LIC HFL FD Interest Calculator
An FD interest calculator is used to compute the total maturity amount of the term deposit by keying in relevant information such as principal amount, rate of interest, tenure, etc. An online FD interest calculator can be used to make this calculation.
Benefits of Investing in LIC Housing Finance Fixed Deposit
- The LIC HFL FD is rated as a stable and safe investment to make by CRISIL. This means that the investment is a highly stable one that offers guaranteed returns
- The interest rates offered on LIC fixed deposits are very competitive and offer a higher rate of return when compared to your average savings account.
- There are a wide range of term deposit schemes that one can choose from, including different tenure ranges and interest payout options
Key Factors Influencing LIC FD Rates
The interest rates offered by LIC HFL depend on a number of factors. These may include both internal and external determinants. Some of these factors could be Reserve Bank of India (RBI) policies, economic conditions, market fluctuation and also the liquidity position of LIC. Let us take a look at some of these elements:
- Economic conditions - Certain economic developments play a huge role in determining the interest rates offered by banks and financial institutions in the country. In most growing economies, people usually try to avail credit to meet their financial needs. Also, when there is high demand for credit, banks may offer higher interest rates to invite more depositors.
- Rise in prices - Among other factors, inflation is also one of the main factors that have an impact on term deposit rates. This determines the interest rates that banks and other financial institutions offer to a large extent.
- Recession - Recession will usually tend to have a negative effect on interest rates in most cases. This is the time when banks and financial institutions will start lowering the rate of interest that is offered on most financial products.
- RBI policies - RBI policies and guidelines play a crucial role in determining the interest rates in the economy.
FAQs on LIC Housing Finance Fixed Deposit Rates
- What is the highest FD rate for LIC Housing Finance?
The highest rate for the cumulative deposit is 6.90% p.a. and for non-cumulative deposit is 6.90% p.a.
- What are the interest payout options available?
For all cumulative term deposits, the interest will be paid and compounded on an annual basis and the customer will be paid at the time of maturity. For all non-cumulative time deposits, interest will be paid annually on March 31st, each year.
- Is LIC Housing Finance a government company?
LIC Housing Finance Limited (LIC HFL) is a Housing Finance Mortgage loan company in India having its Registered and Corporate office at Mumbai.
- In how many years will FD double in LIC Housing Finance?
You can check the total amount you have yielded by calculating the same using the interest rates from the above tables.
- Does the company provide a cumulative option for investment?
Yes, the company does provide a cumulative option for investment.
- What are the different interest payout options available?
Customers can opt for both cumulative and non-cumulative term deposits.
- Is the interest rate different for corporate deposit schemes and general deposit schemes in LIC HFL?
No. There is no difference in the interest rates that are offered.
- How is the interest paid to the account holder?
The interest is directly credited to the bank account of the FD holder through ECS.
- Can I open a joint account?
Yes. However, interest payment will only be made in the name of the first deposit holder.
- Can NRIs open an FD with LIC HFL?
Yes.
- What is the maximum duration allowed for NRIs?
NRIs can hold an FD for a duration of 3 years as per existing norms.
- What is Sanchay?
Sanchay is the name of the public fixed deposit scheme offered by LIC Housing Finance Limited.
- What are the consequences if you do not provide PAN card details while applying for the FD?
The consequences of not providing PAN card details include a higher TDS rate of 20% instead of 10%, no TDS credit from the Income Tax department, TDS certificate not being issued, and all tax exemption certificates being deemed invalid.
- Are all senior citizens eligible for a higher rate of return?
Yes. Senior citizens will be paid more than regular individuals upon providing the valid age proof documents.
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