LIC HF cuts home loan rates by 0.5 percentage points

LIC Housing Finance today announced a reduction in interest rates for its new customers under floating rate loans and 3-year fix-o-floaty rate loans.

For home loan borrowers preferring floating rates ab-initio, the special offer rates for new customers for loans up to Rs75 lakhs will be 8.75 per cent.

Earlier the special offer rates for loans above Rs30 lakhs up to Rs75 lakhs were priced at 9.25 per cent.

For home loan borrowers opting for the 3-year fix-o-floaty scheme, the rates for new customers for loans up to Rs75 lakhs will be 8.90 per cent. The earlier rate of interest for loans above Rs30 lakhs up to Rs75 lakhs was 9.50 per cent.

The rates will be effective from 1 August 2009, LIC Housing Finance said in a release.