LIC Housing Finance Ltd today reduced interest rates for existing home loan borrowers by 75 basis points. The housing finance company said the cut was a result of a reduction in cost of funds. The company said the revised rates, the lowest in almost two years, would be effective from April 1.
Interest rates on home loans will now be between 10-10.50 per cent against 10.75-11.25 per cent earlier.
LIC Housing Finance, which competes against the likes of the State Bank of India, HDFC and ICICI Bank, has also announced a special rate of interest for customers opting for floating rate loans.
This rate reduction is the second such move by the company in the past three months.
It had earlier reduced the interest rates by 75 basis points for its existing home loan borrowers, effective from January 1 this year.
The new floating rate has been fixed at 8.75 per cent for loans up to Rs 30 lakh. For loans above Rs 30 lakh and up to Rs 75 lakh, interest rates will be 9.50 to 9.75 per cent and for loans above Rs 75 lakh, interest will be charged at the rate of 10.50-10.75 per cent.
Filed under: Home loan, Home loan India, Home loan rates | Tagged: Home loan, interest rate, LIC Housing Finance
