Initiated by State Bank of India, the nation's largest lender, and closely followed by Central Bank of India, another public sector giant, Union Bank of India today reduced its interest rate on home loans as well as car loans. The cut on home loan interest rate would be by 25-100 basis points and on car loan by 125-150 basis points.
Customers can avail new home loan rates of Union Bank of India in the range of 9.75-10.75 percent rate, as said by the bank's officials. In another development, the Mumbai branch of the bank has launched a scheme to offer home loans up to Rs 20 lakh at an interest lower than the current level. Free life insurance cover and no additional charges for prepayment and processing would be other attractions of the scheme.
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