We have cut lending rates for existing customers by (75 basis points) from April 1. We have seen our cost of funds coming down in the recent period and this decision (to cut rates) is in consequent to that," LIC Housing Finance (LICHFL) Director and Chief Executive R R Nair said here.

With the reduction, borrowers can now avail of loans at 10-10.5 per cent as compared to 10.75-11.25 per cent earlier, Nair said.

In January, the company had reduced its lending rates by 75 basis points for the existing customers.

"We have reduced our interest rates by (150 basis points) since January this year. We are now offering rates that are lowest in two years," he said.