Union Bank of India is a government-owned bank and one of the first ten public sector undertakings in terms of the network of banks, announced a reduction in home loan rates. The new rate is 6.4%. (Reduced by .8%). Previous home loan interest rates of UBI are 7.35% followed by 6.85%.
The reduction was announced in the press release today (27/10/2021). Such a cut in interest rate is in connection with the upcoming festive season. The recent trend of increased home loan applicants during the festive season has backed such an announcement. In addition to the boom in home loan applicants in connection with the recent press release of reduced interest rate, the bank expects that customer benefit.
The revised rate does not apply to the existing home loans. The new rate applies only to the new loan applicants and to those who transfer their loans along with balance transfer. The rate is applicable from October 27, 2021.
A reduction in interest rates has made UBI competitive among home loan providers. Other competitors in the industry are Kotak Mahindra Bank (6.5%), Bank Of Baroda (6.5%), Housing Finance Limited (6.6%), HDFC (6.7%), and State Bank of India (6.7%).
The maximum home loan provided by UBI is Rs.30 Lakh as a loan for home repair and the amount of home loan depends upon the value of the property and repaying capacity and with a maximum repayment tenure of 30 years for the home loan for purchase and construction and 15 years in relation with the repair. UBI provides several repayment modes.
It was on 2019 August 30, Finance Minister Nirmala Sitharaman announced the merging of Andhra Bank and Corporation Bank into Union Bank of India followed by approval of Union Cabinet on March,4 and completion on April 1, 2020.
Another recent addition to the achievements of the Union Bank of India was its up-gradation of Tier1 bonds from CRISIL AA-/Stable to CRISIL AA/Stable by CRISIL. Union Bank of Indian had also succeeded in maintaining its CRISIL AA+/Stable rating on its Tier II Bonds (under Basel III) and Lower Tier II bonds (under Basel II). The report in relation with rating was published by CRISIL on October 01, 2021.
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