The Mumbai based Union Bank of India has reduced its interest rates on vehicle loans from 12.50 percent (for loans up to three years) and 13.50 percent (for loans of 3 to 5 years) to 10.95 percent for loans having tenure of up to 7 years.

As a part of its ‘Independence Day to Republic Day Festive Offer' the public sector bank has also cancelled the processing fee charges on auto loans.

Additionally, for the festive offer, the bank is also providing home loans on floating rates of 10.50 percent for loans till Rs. 30 lakh; 10.75 percent for loans ranging from Rs. 30 lakh to Rs. 75 lakh and 11 percent for loans from Rs. 75 lakh to Rs. 5 crore. For the home loans segment also, the bank is not charging any processing fees.

Explaining the reason for slashing its interest rates, the Chairman and Managing Director of the bank, Mr. D. Sarkar said that the interest rate cut and the festive offer will help the bank to grow its retail loan products.