NEWS
Union Bank home loan rates at all-time low of 6.4%
Union Bank of India has reduced its interest rates on home loan to an all-time low of 6.40%, going below competitors like State Bank of India and becoming the most competitive in the industry.
Union Bank of India has reduced its interest rates on home loan to an all-time low of 6.40%, going below competitors like State Bank of India and becoming the most competitive in the industry.
The home loan market is seeing intense competition with banks slashing rates to lure customers as demand for corporate credit stays muted.
The state-run Union Bank of India has reduced its interest rates on home loan to an all-time low of 6.40%, going below competitors like State Bank of India and becoming the most competitive in the industry.
The revised rates, which have come into effect from 27 October, will be applicable to customers applying for new loans or those who wish to transfer their existing loans including balance transfers.
"Customers will be benefited from this offering during the festive season as we see a rising demand for buying homes. With this reduced rate of interest, Union Bank of India's home loan rate is the most competitive in the industry," the bank said.
The starting rate of 6.4% will be offered to the best category of customers with credit scores of over 800.
The low-cost deposits is allowing banks the space to drop home loan rates. Credit growth is also crawling at 7% this year, making banks look aggressively at home loans to push their asset book. Banks are also partnering with the big builders for a faster turnaround of loans.
Earlier, Bank of India dropped its interest rates on home loans and vehicles loans by 35 basis points and 50 basis points, amid the festive season. The interest rates on home loans starts at 6.50% compared to 6.85% earlier. On vehicle loans, the new interest rates start at 6.85% compared to 7.35% earlier.
State Bank of India (SBI), the country's largest lender, has also reduced home loan interest rates to 6.7% to lure buying during the festive season. SBI is offering credit score linked home loans at 6.70%. irrespective of the loan amount. The bank waived off the processing fees completely and is offering attractive interest concession based on the credit score of the borrower.
Among private lenders, HDFC had also announced a festive season offer of starting interest rates for home loans at 6.70%. This offer started from September 20 and will run through till October 31, 2021.
