LIC Housing Finance (LICHF) has announced a reduction of 75 basis points in its home loan rates for existing customers across all maturities.
“The incremental cost of funds have come down to around 8.25-8.75 per cent, as against over 11 per cent in October. So we have decided to pass on the benefits to existing customers,” said LICHF Chief Executive Officer RR Nair.
Correspondingly, the new rates would be in the range of 10-10.50 per cent across various maturities effective from April 1, compared with 10.75-11.25 per cent earlier.
This is for the second time in 2009 that the company has reduced rates for existing customers. Earlier, the company had reduced the rates by a similar margin in January.
“With this cut, we have reduced our rates by 150 basis points in the last three months, which is more than what we increased across three tranches last year,” Nair added.
He was referring to May, July and August last year when the company had increased the interest rates for existing customers by 25, 50 and another 50 basis points, respectively.
