Vijaya Bank on Wednesday slashed interest rates on home loans by 50 to 75 basis points to touch 7 per cent per annum for upto 5 years.

With the equated monthly installment now working out to Rs 1,980 per lakh, Vijaya Bank said the new rate offered on home loan was the lowest among public sector banks and perhaps the lowest in the banking industry.

The interest on loans from 5 to 10 years is 8 per cent and above 8 years, 8.25 per cent.

The benefit of reduced interest rate would also be extended to the existing housing loan borrowers, who had opted for a fixed rate of interest earlier on payment of upfront fee of 1 per cent, it said.