UBI Slashes Home Loan Interest Rates

Mumbai: Union Bank of India has taken the lead in reducing interest rates on home loans below Rs 20 lakh by 50 basis points with immediate effect. On April 24, the RBI decreased the risk weightage on residential housing loans to individuals from the existing 75 per cent to 50 per cent. The interest rate on fixed home loans has been revised to 10.75 per cent from 11.25 per cent. The interest rate on floating home loans has been decreased to 10 per cent (10.50 per cent) for advances up to 5 years, 10.50 per cent (11 per cent) for those above 5 years but below 10 years and 10.75 per cent (11.25 per cent) for above 10 years.