Mumbai (PTI): LIC Housing Finance on Thursday said that it has cut interest rates for new customers.

It has introduced a new scheme, a three-year 'Fix-o-Floaty' scheme, which offers flexibility to customers as well as protection against the volatilities of interest rate momvement.

Under this scheme, borrowers will pay a fixed interest rate of 8.9 per cent for loans up to Rs 75 lakh and 9.5 per cent for loans above of Rs 75 lakh for a period of three-years, a press release issued here stated.

Thereafter, a floating rate prevailing at the end of three-years will have to be paid, the release said.

This scheme for new customers comes into effect from today.

At any time during the three-year initial period, the customer has a choice of shifting to the floating interest rate without any additional charges, the release said.

For home loan borrowers preferring floating rates ab-initio, the special offer rates for new customers for loans up to Rs 75 lakh will be 8.50 per cent, as against 8.75 per cent to 9.75 per cent. For loans above Rs 75 lakh, the rates will be 9.50 per cent as against 10.25 per cent earlier.