Union Bank cuts home, education loan rates

Union Bank of India, on Friday, reduced education loan rates by up to 2 percentage points, and a category of home loans by 0.25 percentage points, as the focus of the banking industry shifts to retail borrowers.

Under the revised rates applicable from November 29, educational loan rates go down by 1.5-2 percentage points while the interest on home loans above Rs.30 lakh will be cheaper by 0.25 percentage points, the bank said in a statement.

Educational loans of up to Rs.7.5 lakh can be availed at an interest of 12.75 per cent while that above Rs.7.5 lakh will be priced at 12.50 per cent, it said.

For home loans up to Rs.75 lakh, credit will be available on a par with the base rate at 10.50 per cent; for loans above Rs.75 lakh and up to Rs.5 crore, the interest gets reduced to 0.25 percentage points over the base rate.

Low demand

Demand from the corporate side has dried up due to gloomy economic conditions, which have forced bankers to shift focus towards the retail segment, where demand continues.