UBI cuts new home, car loan rates

Written by Agencies | Mumbai | Updated: Mar 1 2009, 00:35am hrs
The Union Bank of India cut its interest rate on home and car loans by 100 and 150 basis points, while another state-run lender Punjab National Bank reduced rates on car loans by 50 basis points.

The reductions follow country's biggest public sector bank SBI's cutting interest rate on last Saturday to 10 per cent and farm loans to 8 per cent.

UBI said its new home loan rates will be available in the range of 9.75-10.75 per cent interest rate, while rates on new car loans are in the range of 11-11.25 per cent.

Punjab National Bank, country's second largest state-run lender, will offer new car loans at an interest rate of 10.5-11 per cent, it said in a statement.

Mumbai-based UBI has also launched a separate scheme, under which it will offer home loans up to Rs 20 lakh at lower interest rates.

The scheme also carries special features like free life insurance cover and will be offered free of prepayment and processing charges, the bank said.