The National Housing Bank (NHB) has reduced the rate interest rates for its special `refinance scheme for urban, low-income housing' for loans up to Rs 5 lakh by 0.75 per cent to 1 per cent.

The interest rate on NHB's refinance will now be at 9 per cent per year on loans up to Rs 2 lakh compared to 10 per cent earlier and 9.25 per cent per annum for loans between Rs 2 lakh to Rs 5 lakh as against to 10 per cent earlier.