Mumbai (PTI): Leading home loans provider, LIC Housing Finance, today cut interest rates for new loans by 0.5 per cent effective from August 1.

With this, for customers opting for floating rate loans between Rs 30 lakhs and Rs 75 lakhs, the new rates will be 8.75 per cent as against 9.25 per cent.

For three-year fixed or floating scheme loans between Rs 30 lakh upto Rs 75 lakh, the new rate will be 8.90 per cent against 9.5 per cent earlier, a company press release said.

"The decision has been taken in view of the prevailing market conditions," an LICHF official said.

Country's premier home loans lender, HDFC, has also cut interest rates on loans between Rs 30 lakh-Rs 50 lakh by 0.50 per cent from August 12.

The new rate accordingly stands at 9 per cent from the earlier 9.5 per cent, an HDFC source said.

For loans up to Rs 15 lakh, the rate remains unchanged at 8.75 per cent and for loans between Rs 15-30-lakh, the rate remains at 9 per cent, the source said.