Mumbai: State-run Union Bank of India on Friday reduced education loan rates by up to 2 percent, and a category of home loans by 0.25 percent, as the focus of the banking industry shifts to retail borrowers.
Under the revised rates applicable from November 29, educational loan rates go down by 1.5-2 percent while the interest on home loans above Rs 30 lakh will be cheaper by 0.25 percent, the bank said in a statement.
Educational loan of up to Rs 7.5 lakh can be availed at an interest of 12.75 percent while that above Rs 7.5 lakh will be priced at 12.50 percent, it said.
For home loans up to Rs 75 lakh, credit will be available on par with the base rate at 10.50 percent; for loans above Rs 75 lakh and up to Rs 5 crore, the interest gets reduced to 0.25 percent over the base rate.
Demand from the corporate side has dried up due to gloomy economic conditions, which have forced bankers to shift focus towards the retail segment, where demand continues.