Mumbai, March 16, 2009: LIC Housing Finance Limited today announced a further reduction in Interest Rates for its existing Home Loan borrowers consequent to a reduction in its cost of funds. The Interest Rates for existing customers would be reduced by 75 basis points on EMIs falling due on 1^st April 2009, payable on 1^st May 2009. The reduced rates will be the lowest in almost two years.

This interest rate reduction is the second one by the Company in the past three months. The Company had earlier reduced 75 basis points for its existing Home Loan borrowers on EMIs due from 1^st January 2009.