Union Bank cut interest rates by 1.5% to 2.5% to 10.95% for vehicle loans of up to seven year tenure
Mumbai: Union Bank of India said it has slashed interest rates on vehicle loans in the range of 1.55-2.55% and brought them to a flat 10.95% on zero to seven-year tenor with immediate effect, reports PTI.
The public sector lender's move follows a similar decision by other state-run banks such as the State Bank of India (SBI) and Indian Overseas Bank (IOB), among others.
Earlier, the rates offered by the Union Bank were 12.5% for 0-3 years and 13.5% for 3-5 years, a release from the state-owned bank said.
The bank has also extended its 'The Independence to Republic Day Festive Offer' on vehicle loans by waiving processing fees during this period.
"The reduction in interest rates and the festival offer will boost the bank's retail portfolio," Chairman and Managing Director of Union Bank D Sarkar said.
Earlier, Union Bank had reduced home loan rates to 10.5% besides waiving 0.5% processing fee on loan amount.
SBI recently reduced home loan rates to 10.25% from 10.5% for loans up to Rs30 lakh and 10.4% for loans between Rs30 lakh and Rs75 lakh.
Similarly, the country's largest lender has reduced car loan rates to 10.75% from 11.25% earlier.
While IOB has reduced home loan rate to 10.5% along with 0.5% reduction in auto loan rates, the Central Bank of India has announced cut in interest on home loans by 25-50 basis point for the amount in Rs30-35 lakh range with effective from 1st September.
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