Union Bank of India (UBI), one of the country's largest public sector banks, has announced a cut-back between 1.55 and 2.55 per cent in its current auto loan rates, bringing the figure to a flat 10.95 per cent rate for loan tenure of 0-7 years with immediate effect. In addition to the slash in interest rates, the bank has also prolonged its 'The Independence to Republic Day Festive Offer'.
UBI is the latest in the list of public sector banks such as State Bank of India (SBI) and Indian Overseas Bank (IOB) to slash auto loan interest rates.
D. Sarkar, Chairman and Managing Director (MD), UBI said, “The reduction in interest rates and the festival offer will boost the bank's retail portfolio.” A statement from UBI revealed its previous interest rates to be 12.5 per cent for 0 to 3 year period and 13.5 per cent for 3 to 5 year period. Reportedly, UBI had also slashed its home loan rates to 10.5 per cent and renounced the 0.5 per cent processing fee levied on loan amount.
Interestingly, SBI has also decreased its home loan interest rates to 10.25 per cent from 10.5 per cent for finances amounting up to Rs. 30 lacs and a rate of 10.4 per cent is being charged on the loan of Rs. 30 lacs to Rs. 75 lacs. Highlighting the alterations made in auto sector, the country's largest public sector bank slashed its car finance interest rates to 10.75 per cent from the previous 11.25 per cent.
Joining the band wagon, IOB also decreased its interest rates of home loan to 10.5 per cent, besides a 0.5 per cent cut-back in auto finance interest rates. Starting immediate effect from September 1, the Central Bank of India (CBI) has also formulated a reduction in interest rates of its home loans by 25-50 basis point for the amount between Rs. 30-35 lacs range.
