The country's second-largest private sector lender, ICICI bank has announced to cut interest rates on home loans by 25 to 50 basis points with immediate effect following RBI's move to cut repo and reverse repo rates by 50 points on Wednesday.

The Reserve Bank had asked banks to revise interest rates by 50 basis points in a bid to stimulate demand in housing sector, facing the heat of global slowdown due to low demand across the segment.

Home loans up to Rs 20 lakh would be provided at interest rate of 9.75 per cent as compared to 10 per cent before the interest rate revision. Loans between Rs 20 lakh and Rs 30 lakh can be availed at 10 per cent interest rate against earlier interest rate of 10.5 per cent. Interest rate of 11.5 per cent would be applicable for loans above 30 lakhs. However, revised interest rates are still higher than HDFC and SBI charges.

Meanwhile, the bank did not alter its prime lending rate (PLR) for the moment as it had earlier revised benchmark rates by 50 basis points to 16.75 per cent.

UCO bank and Kolkata-headquartered lender, United Bank of India have also reduced their prime lending rate (BPLR) by 50 basic points to 12.50 per cent and 25 basis points to 12.50 per cent, applicable from first week of March. (With Inputs from TopNews correspondents in India)