The competition to attract new home loan customers during the ongoing festive season just got tougher as Union Bank of India (UBI) on Tuesday announced that it will offer home loans starting from 6.40 per cent against 6.80 per cent earlier.
The public sector bank, in a statement, said with this reduced rate of interest, its home loan rate is the most competitive in the industry.
The reduced rate, which will be effective from October 27, 2021, will be applicable to customers applying for new loans or those who wish to transfer their existing loans including balance transfers.
Currently, competitive home loan rates are being quoted by Kotak Mahindra Bank and Bank of Baroda (6.50 per cent), Punjab National Bank (6.60 per cent) State Bank of India and ICICI Bank (6.70 per cent), among others. Most of the Banks are quoting these special rates for the festival season.