LIC Housing cuts lending rates by 75 bps

LIC Housing Finance today announced a reduction of 75 basis points in interest rates for existing home loans with effect from tomorrow.

The reduction is on EMIs falling due on January 1, 2009 and payable on February 1, 2009, the company said in a statement.

The move was consequent with a reduction in cost of funds, the company said.

For new customers, LIC Housing Finance had already reduced interest rates from December 17. For loans up to Rs 20 lakh and up to five years, the lending rates stand at 9.25 per cent.

For loans up to Rs 20 lakh and above five years, LIC Housing Finance has reduced lending rates to 9.75 per cent.