Union Bank slashes home loan interest rate to all-time low of 6.40%, check SBI, LIC HFL’s offerings

In what could be great news for home buyers, the Union Bank of India has reduced interest rates on home loans to an all-time low of 6.40%.

New Delhi: As part of the Diwali offer, the Union Bank of India has slashed interest rates on home loans to an all-time low of 6.40%. Buyers planning to buy a new home can benefit from the offer. 

The reduced home loan interest rates offered by the Union Bank are applicable from Wednesday (October 27, 2021). In a press statement, the bank said, “Union Bank of India announces reduction in its home loan interest rates with a minimum rate of interest now starting at 6.40 per cent.”  

Union Bank said it is the all-time low rate for home loans for the bank. "Customers will be benefited from this offering during the festive season as we see a rising demand for buying homes. With this reduced rate of interest, Union Bank of India's Home Loan rate is the most competitive in the industry," it said. 

Besides new home purchases, the low interest will be applicable on loan transfers. Customers who wish to transfer their existing loans including balance transfers can avail themselves of a Union Bank home loan at a 6.40% interest rate. 

Prior to Union Bank, Kotak Mahindra Bank and Bank of Baroda (BoB) were offering home loans at the lowest interest rate of 6.50% per cent. Moreover, Life Insurance Corporation of India’s lending arm, Housing Finance Limited, is offering home loans at 6.60% while SBI is providing a 6.7% interest rate. Also Read: IT Jobs: TCS, Infosys, Wipro, HCL to hire more woman freshers via campus hiring

With banks offering homes at the lowest interest rate ever seen, buyers are expected to invest in real estate. As a result, the real estate industry could also witness a boom, providing a slight push to the Indian economy. Also Read: WhatsApp history can be transferred from an iPhone to any phone with Android 12