Union Bank cuts home loan rates by 25 bps
The move which is expected to ramp up bank's retail loan portfolio, will benefit both new and existing borrowers. UBI also cut rates on education loan by 150-200 bps, while giving additional 50 bps concession to girl students. Education loan up to R7.5 lakh are now offered at 12.75%, while loans above that limit are offered at 12.5% starting Thursday. The bank had already waived processing fees on all home and auto loans under a special festival season scheme.
The public sector lender's total retail advances stand at R17,620 crore as on September 30, which forms about 9.97% of total advances. Home loans are the major contributor to UBI's retail loan portfolio, covering about 63.36%. Education loans form 11.6% of total retail assets for the bank. The move is in line with other players who have recently announced reduction in retail loan products, to boost their loan growth in the festival season.
On a year-on-year basis, non-food bank credit increased by 15.5% in October as compared with the increase of 18.2% in the same month last year, monthly data put out by Reserve Bank of India on Friday, said. Retail loans increased by 14.1% in October, to Rs
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