Croatia came from behind to beat the Three Lions 2-1 in the Luzhniki Stadium after extra time to make the final for the first time in their history.
The will now take on France in the World Cup final on Sunday – and Lovren says is was their mentality that got them through.
He said: “The difference [between Croatia and England] was mental. Mentally. Because we knew we could write history – and we did it.
“Now there is only one game left to make it forever. This is what I wanted. This is why I am proud. I deserve this.
“France are definitely the favourites, there is no hiding that, but we like that we love to be the underdogs from day one.
“I think it’s our mentality. We went through a lot of shit again, the war and all these things and even now the situation is not the best, but it is unbelievable how many talents we have in sport if you look at it.
“We wrote history – and we should not forget this achievement.”
Lovren was slammed by critics last season with many claiming he wasn’t good enough to hold down a regular place in Jurgen Klopp’s side.
His low point came in a 4-1 defeat against Tottenham that saw him hauled off after Harry Kane scored twice.
Lovren admits he became sick of the ‘s**t’ people threw at him and his nation and that he used it as motivation to go on and reach the two biggest finals possible in the shape of the World Cup and Champions League.
Lovren added: “It feels incredible, especially after everything that was said about us before the game. We showed our character, we showed that we deserved to be in the final and people should respect us.
“It wasn’t just the English press. It is just sometimes it is unfair. Like in my case when you are talking about me.
“I think people should respect me. But from today everyone in Croatia and around the world thinks that we managed to make history.
“It’s beautiful. If somebody told me that from the beginning of the season I would be in two of the biggest finals in the world, I would have signed up straight away, because I went through a lot of s**t.
“I think I have done that without being arrogant. I think definitely if you are in the final you are the two best teams in the world.
“On Tuesday I received a question like ‘what do you think about the 4-1? I really don’t understand these questions, always looking back to where I made some mistakes.
“I really don’t understand. There is too much about me. But whatever, this is what gets me more motivated to work harder and prove everyone wrong, everyone.”