Housing finance firm, LIC Housing Finance (LICHF) slashed home loan interest rates by 75 basis points, covering all existing customers who have availed loans at different maturities.

LICHF Chief Executive Officer, RR Nair, said, "The incremental cost of funds has 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."

The new home loan interest rates would be applicable from April 1 in the range between 10-10.50 per cent across various maturities as compared to earlier interest rate of 10.75-11.25 per cent.

LIC Housing Finance had also revised interest rates in January last year and increased rates for existing customers by 25, 50 points in May, July and August last year. A banking official said, "They have been slashing rates for new customers while old customers are paying high interest rates."

Mr. Nair said, "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 trenches last year."