LICHF to cut loan rates for existing customers from Apr 1

LIC Housing Finance (LICHF) has decided to reduce home loan rates for existing borrowers by 75 basis points or 0.75% with effect from April 1, 2009. The company stated that the decision has been prompted by a reduction in its cost of funds.

Following the rate cut, home loan borrowers can now avail loans for a rate of 10-10.5% as against 10.75-11.25% earlier.

In January, subsidiary of India’s largest life insurer LIC had reduced its lending rates by 0.75% for the existing customers.