Private sector lenders ICICI Bank and HDFC on Monday reduced their interest rates on home loans.

Private sector lender ICICI Bank reduced its interest rates by up to 30 basis points (bps) for home loans of up to Rs 30 lakh.

"With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry. Salaried women borrowers will get home loans at 8.35 per cent and others at 8.40 per cent," the private sector lender said in a statement. 

According to ICICI Bank, customers from economically weaker section (EWS) and low income group (LIG) can avail the dual benefit of low interest rates and credit linked subsidy under the Pradhan Mantri Awas Yojana.

Commenting on the initiative, ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar said: "ICICI Bank is committed to supporting the government's vision to provide housing for all by 2022. In line with this commitment, we have reduced the home loan interest rates for the affordable housing segment."

Besides ICICI Bank, HDFC reduced its rates for women borrowers to 8.35 per cent and others to 8.40 per cent for home loans of up to Rs 30 lakh.

The firm said that for rates for home loans between Rs 30 and Rs 75 lakh has been fixed to 8.50 per cent and above Rs 75 lakh to 8.55 per cent.

On May 8, the country's largest home loan provider State Bank of India (SBI) announced a reduction in the home loan rates by 25 bps from 8.60 per cent to 8.35 per cent per annum.