New Delhi, India | December 24, 2025
Union Bank of India has announced a reduction in interest rates on select retail loan products, offering relief to customers planning to take home, vehicle, or personal loans.
According to the bank, the rate cuts apply to home loans, auto loans, and personal loans, making borrowing more affordable amid stable monetary conditions.
Revised Loan Interest Rates
Home Loans:
Interest rates have been reduced by 0.30 percentage points, bringing the new starting rate down from 7.45% to 7.15%.Vehicle Loans:
Auto loan interest rates have been cut by 0.40 percentage points, lowering the rate to 7.50%.Personal Loans:
Personal loan rates have seen the sharpest reduction of 1.60 percentage points, with the new rate now starting at 8.75% per annum.
Boost for Retail Borrowers
The rate cut is expected to boost retail credit demand, especially in the housing and automobile segments. Lower personal loan rates may also encourage spending on consumer goods, education, and other personal needs.
Public sector banks, including Union Bank of India, have been actively adjusting lending rates to remain competitive and support economic activity.
