The rate of interest has been cut in Union Bank of India (UBI), public sector based in Mumbai, for people who got home loans over 30 lakhs. Now, this bank provides home loans at base rate for up to 75 lakhs. The base rate of the bank remains the same, 10.5%. UBI made an announcement in August about the interest rate reduction on home loans borrowed up to 30 lakh at the base rate. The interest rate will be 10.75% for the loans lend over 75 lakh and up to 5 crores. The bank announced that these loans will not contain any processing fees.
The education loan interest rate might be decreased by base points ranging from 150-200. At present, the interest is 12.75% for education loan of up to 7.5 lakh and 12.5% for an amount crossing 7.5 lakh. The bank also made a declaration that the female students get 50 basis points as discounts for the loan amount of up to 75 lakh and over 75 lakh, at interest rate of 12.25% and 12% respectively.
The home loan rates in the State Bank of India are very low when compared to the other banks. The rates in SBI are 10% for up to 30 lakhs and 10.15% over 30 lakhs. Thus, the loan disbursals have been tripled in SBI. The interest rate for education loan is 11.75% for amount above 7.5 lakhs and is charged at 13% for loan between 4 and 7.5 lakhs. The interest is 13.25% for loan below 4 lakhs.