New Delhi: In what could trigger another round of rate cut war, National Housing Bank (NHB) on October 15 slashed lending rates by 0.40-0.65 per cent just two weeks before Reserve Bank announces its busy season Credit Policy.

To boost the rural housing sector, NHB would offer additional 0.25 per cent lower rates to various institutions for loans up to Rs 10 lakhs.

The refinance rate, the rate at which NHB lends to housing finance companies (HFCs), has been lowered by 0.40 per cent to 6.70 per cent for 3-year loans up to Rs 10 lakhs.

The rate has been slashed to 6.9 per cent for 3-7 year loans and to 7.10 per cent for 7-15 year loans, a NHB release said on October 15.

For loans above Rs 10 lakh to Rs one crore, the lending rate has been cut to 6.90 per cent for 3-year loans, 7.10 per cent for 3-7 year loans and to 7.30 per cent for 7-15 year loans.

The floating rate loans have been slashed to 6.50 per cent for 7-year loans up to Rs 10 lakh, while it is 6.70 per cent for 7-15 year loans.

For loans above Rs 10 lakh, the floating rate has been pegged at 6.70 per cent for 7-year loans and 6.90 per cent for 7-15 year loans.

PTI