Dewan Housing Finance Corporation (DHFL), one of India's leading housing finance companies, today announced a reduction in its retail prime lending rate by 20 bps. DHFL has reduced rates for its new customers and the rate will now start from 9.65%.

Additionally DHFL has announced a festive season offer whereby it will be providing a promotional rate of 9.55% (further 10 bps reduction from its new rate) to its new customers for loans upto Rs 25 lakhs. This offer is valid upto Dec. 31, 2015.

The company largely caters to the low and middle income segment in the Tier II, Tier III towns, with an average loan ticket size of below Rs 15 lakhs. The low and middle income segment customers, which comprises majority of the total home loan book size, would stand to benefit the most, with the fresh rate cut and the festive season offer.

Kapil Wadhawan, chairman and managing director, DHFL said, "Over the last three decades, DHFL has been committed towards ensuring affordable housing finance to the Low and Middle income consumers. We believe that owning a home especially in this season is a deep desire within our customer segment. Our festive season offer reflects our commitment towards enabling home ownership in tier 2 and 3 towns for each and every Indian especially in the LMI segment."

Shares of the company declined Rs 1.7, or 0.75%, to settle at Rs 224.35 at the BSE (Wednesday).