new delhi uco bank said on friday it may cut home loan rates by 50 basis points the stateowned bank is scheduled to take a final decision on the proposal at a board meeting on march 15 it is not clear whether lower rates will be offered for home loans under rs 20 lakh the government had said that it is in favour of lower interest rates for home loans under rs 20 lakh to meet demand these loans constitute 80 of the advances classified under priority sectorwe have already cut down home loan rates by 50 basis points and may further cut down the rates by another 50 basis points uco bank chairman and managing director s k goel said on raising capital mr goel said the bank would take a view only when market stabilises if markets do not stabilise till june the bank would raise about rs 250 crore through qualified institutional placement he saidsmaller loans have less risk weight than those above rs 20 lakh and therefore bankers have incentives to lend to these borrowers at lower interest ratesseveral banks including sbi canara bank allahabad bank and hdfc have reduced lending rates by 2550 basis points the largest private bank icici bank has said there could be softening of rates in the first quarter of the next fiscal sbi charges 10115 for loans up to rs 20 lakh mr chidambarams recent call for softer interest rates could mean further lowering of interest rates in the home loan segment