LIC Housing Finance on Wednesday announced a reduction of 75 basis points in interest rates for existing home loans with effect from 1 January.The cut is on EMIs falling due on 1 January, 2009 and payable on 1 February, 2009, the company said in a statement.
The move was consequent with a reduction in cost of funds, it said.
For new customers, it had already slashed interest rates from 17 December. For loans up to Rs20 lakh and up to five years, the lending rates stand at 9.25%.
For loans up to Rs20 lakh and above five years, LIC Housing Finance has reduced lending rates to 9.75%.