Triggering another rate cut war, country’s second biggest home loan company LIC Housing Finance decided on Tuesday to slash floating interest rates by 0.25 per cent to make them the cheapest in the industry. The interest rate for loans with maturity period of 1-6 years would be 9.25 per cent, while it would be 9.75 per cent for 7-12 year loans and 10.25 per cent for 13-20 year loans effective from December 4 last year.‘‘LIC Housing Finance is reducing interest rates on all its loan products like home loans, home extensions, home improvement and office premise loans to professionals,’’ company officials said here. The move comes after a spate of rate cuts by banks especially after the reduction in bank rate by 0.25 per cent to 6.25 per cent by RBI in October last year. The company claimed that with the rate cut, LIC Housing Finance now offers the lowest interest rates in the industry. ‘‘This reduction in interest rate is part of LIC housing’s efforts to rationalise rates on housing loans and to provide value-added services to its customers,’’ the company official added. (PTI)
