Union Banks Chops Down Education Loan Rates By 2%

The State run Union Banks of India has reduced loan rates by 2%, and a category of home loans by 0.25%. This is all because of the focus of the banking industry shifts to the retail borrowers.

The Bank statement says- Under the revised rates applicable from November 29, the educational loan rates go down by 1.5-2 % while the interest on home loans above Rs. 30 lakhs will be cheaper by 0.25%.

Students can avail education loans of upto Rs.7.5 lakhs at an interest of 12.75% while that above Rs. 7.5 lakhs will be paid at 12.50%, says the statement. For home loans up to Rs. 75 lakh, credit will be available on par with the base rate at 10.50% for loans above Rs. 75 lakh and up to Rs. 5 crore, the interest gets reduced to 0.25% 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.

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