The Union Bank of India reduced its interest rates on home loan to an all-time low of 6.40 per cent to provide affordable loan offers to its customers amid the festive season. The reduced rate will come into effect from October 27, 2021, according to a statement released by the state-run lender today.
The new rates will be applicable to customers applying for new loans or those who wish to transfer their existing loans including balance transfers, according to the bank.
Recently, Bank of India also reduced 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 per cent, compared to 6.85 per cent earlier, while rates on vehicle loans start at 6.85 per cent, compared to 7.35 per cent earlier, according to Bank of India.
State Bank of India (SBI) – the country’s largest state-run lender, also has reduced home loan interest rates to 6.7 per cent to support home loan customers amid the festive season. SBI is offering credit score linked home loans at 6.70 per cent – 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 special limited period offer for the festive season with the latest home loan interest rates starting at 6.70 per cent. As part of the festive season offer, customers can avail the HDFC home loans at 6.70 per cent from September 20, 2021 – which will be valid till October 31, 2021.
On Tuesday, October 26, shares of Union Bank of India settled 0.52 per cent lower at Rs 48.10 apiece on the BSE. Union Bank of India opened on the BSE at Rs 48.45, touching an intra day high of Rs 50.20 and an intra day low of Rs 47.25, throughout the trading session today.