State-owned Union Bank of India has reduced interest rates on select retail loan products, effective 18 December.

Under the revised rate structure, home loan interest rates have lowered by 30 basis points and will now start at 7.15% per annum, as against the earlier rate of 7.45%.

Similarly, vehicle loan interest rates have fallen 40 basis points, and will now start at 7.50%, compared to the previous benchmark rate of 7.90%.

Personal loan interest rates have seen a sharper reduction of 160 basis points, with rates now starting at 8.75%, down from the earlier rate of 10.35%.

In addition to the base rate reduction, Union Bank of India is offering an additional concession of 0.10% per annum on eligible Green Finance Home Loans and Vehicle Loans.

The revision comes against the backdrop of easing monetary conditions during the year. The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 5.25% on 5 December, marking the fourth rate cut in 2025 and taking the cumulative reduction for the year to 125 basis points. The Union government had also eased GST norms for automotive sector.

“With this revision, Union Bank of India aims to support homebuyers, vehicle purchasers and personal loan customers by lowering borrowing costs while continuing to maintain prudent lending standards,” the lender said in a statement.