Industrial Development Bank of India's home finance subsidiary has cut its floating interest rates by 0.5 per cent across all slabs.

The revised interest rate, which comes into effect from November 4, for up to five-year loan tenure is 7.75 per cent (earlier 8.25 per cent), a press release issued by IDBI Homefinance Ltd (earlier known as Tata Homefinance Ltd) said, quoting managing director and CEO, M Rego.

The new rates for 6-10 years, 10-15 years and 15-20 years are 8.25 per cent, 8.5 per cent and 8.75 per cent respectively, he said.

The company has disbursed loans aggregating Rs 110 crore (Rs 1.1 billion) in the first seven months ending October of the current fiscal, he said, adding, the total portfolio stood at Rs 460 crore (Rs 4.6 billion).

IDBI had taken over Tata Homefinance in September 2003. Immediately after takeover, the company announced an interest rate cut from 9.75 per cent to 8.25 per cent on September 17, 2003 for five-year loans.