"We have cut lending rates for existing customers by 0.75 per cent from April 1. We have seen our cost of funds coming down in the recent period and this decision (to cut rates) is in consequent to that," LIC Housing Finance (LICHFL) Director and Chief Executive, R R Nair, said here.
With the reduction, borrowers can now avail loans for a rate of 10-10.5 per cent as against 10.75-11.25 per cent earlier, Nair said.
In January, the company had reduced its lending rates by 0.75 per cent for the existing customers.
"We have reduced our interest rates by 1.5 per cent since January this year. We are now offering rates that are lowest in two years," he said.
LICHFL, a subsidiary of India's largest insurer Life Insurance Corporation of India, had cut its lending rates by 1.25 per cent in three tranches during last year.
Other Products of LIC: