LIC Housing Finance Limited (LIC HFL) on Monday announced a cut of 0.25 per cent in home loan rates and lower processing fee for the festive period.

The housing finance company said it would charge 0.25 per cent lower interest on home loans from October 15 to November 30.

Subscribers to the Bhagyalakshmi Plus scheme, which specifically caters to women borrowers, the rate of interest will now start from 10.10 per cent for the first fixed 2-year period.

The company said in a statement, "The rate of interest for Bhagyalakshmi Plus, designed for women borrower as first property owner, will be from 10.10% onwards for the first fixed period of two years."

Following conversion to floating rate, borrowers will enjoy an additional discount of 0.25 per cent.

Rates of interest have also been slashed by 0.25 per cent in its other schemes, such as New Fixed 10, which is fixed for 10 years. Rates for this loan scheme will now start from 11.25 per cent; while inter rate on `sure fixed' scheme starts from 12.25 per cent.

Inter rate loans under Super Choice scheme for general borrowers now starts from 10.35 per cent. The interest rate in this scheme will remain fixed at 10.35 per cent for the first two years, and then convert to floating rate.