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Journalism of Courage
Following market leader State Bank of Indias move to slash interest rates,public sector Union Bank of India today cut its interest rate on home loans by 25-100 basis points and car loans by 125-150 basis points. Another state-run lender Punjab National Bank has reduced rates on car loans and term deposits by 50 basis points.
UBI said its new home loan rates will be available in the range of 9.75-10.75 per cent interest rate,while rates on new car loans are in the range of 11-11.25 per cent. Mumbai-based UBI has also launched a separate scheme,under which it will offer home loans up to Rs 20 lakh at lower interest rates. The scheme also carries special features like free life insurance cover and will be offered free of prepayment and processing charges,the bank said.
Under the scheme,loans up to Rs 5 lakh will carry an interest rate of 8.5 per cent,while for Rs 5-20 lakh,the new rate will be 9.25 per cent,UBI said. The scheme will be valid till June 30 and the rates will be reset after a period of five years,the bank said.
With the latest reduction,PNBs interest rate on car loans will be in the band of 10.50% to 11.00% as against 11.00% to 11.50% at present. PNB has also realigned the interest rates on retail term deposits by reducing interest rates by 50 bps in the time slabs of 46 to 90 days and 180 days to less than 1 year. The above changes will be effective from March 1,2009. There is no change in interest rates on other time slabs with peak rate of 8% being offered for deposits of 1 year to less than 5 years, it said.
