LIC Housing Finance has reduced the interest rate on home loans by 60 basis points (bps) to 7.5% for new customers with a credit score of 800 from CIBIL.

The rate is applicable for any loan amount. “An additional reduction of 10 bps i.e. 7.4% will be offered if the customer assigns new/existing single premium term assurance policy with the sum assured equal to the loan amount to LIC HFL,” it said. For customers with a below-800 score, the rate will start at 7.9% without the policy and 7.8% with the policy.

“We want to bring confidence back to the sector and will do our part in supporting the real estate industry and the economy,” Siddhartha Mohanty, Managing Director & CEO, LIC Housing Finance Ltd., said.

The country’s largest mortgage lender HDFC which has reduced home loan rate by 15 bps a few days back, offer the lowest home loan rate of 7.85% for loans less than ₹30 lakh.