mumbai on the heels of public sector banks slashing home loan rates lic housing finance has announced a 175225 percentage point cut in lending rates for home loans up to rs 20 lakh from december 17 we have reduced our lending rates with effect from december 17 for a fiveyear term our lending rate for loans up to rs 20 lakh is 925 per cent and for those beyond five years the rate will be 975 per cent lic housing finance director and chief executive r r nair said here for loans above rs 20 lakh the rate has been reduced from 1150 per cent to 1125 per cent nair said public sector banks recently cut their lending rates on home loans up to rs 5 lakh to 85 per cent and loans of rs 520 lakh to 925 per cent for the first five years after which the lending rates will be reset the scheme which is applicable for loans taken till june 30 also offers free life insurance cover and exemption from prepayment penalties to borrowers in these categories lic housing finance is offering floating rates for home loans within six months it will be linked to prime lending rates plr minus 3 percentage points or 25 per cent depending upon the customer profile nair said the rates will be reviewed on april 1 or july 1 next he said though the government has directed public sector banks to give a fiveyear fixed rate we cannot give fixed rates for five years because of possible uncertainties in market trends nair said