Cheaper Loans: Union Bank of India has given significant relief to customers by reducing interest rates on home loans, car loans, and personal loans. Following the RBI's 0.25% reduction in the repo rate, the bank implemented the new rates from December 18, 2025. Home loans will now start at 7.15%, vehicle loans at 7.50%, and personal loans at 8.75% per annum. Additionally, there will be extra discounts on green finance.
Cheaper Loans: Do you want a cheaper home loan, personal loan, or car loan? If yes, then head to Union Bank of India quickly. After the Reserve Bank of India (RBI) reduced the repo rate at the beginning of December, there is good news for ordinary customers. The public sector Union Bank of India has announced a reduction in interest rates on select retail loan products. This decision by the bank will directly benefit those taking home loans, car loans, and personal loans, and their EMIs will be lower than before.
Impact of RBI's Repo Rate Cut
Union Bank of India has taken this step after the RBI's bi-monthly monetary policy review. This month, the Reserve Bank reduced the repo rate by 0.25% or 25 basis points. Following this, several banks started reviewing their interest rates. Now, Union Bank has also reduced interest rates, providing relief to customers. According to the bank, the new rates have been effective from December 18, 2025.
Home Loans Become Even Cheaper
Under the revised rates, Union Bank of India has reduced interest rates on housing loans by 0.30%. Now, the bank's home loan will start at 7.15% per annum, which was previously 7.45% per annum. This is likely to reduce EMIs for new home loan borrowers as well as existing customers with floating rates.
Relief on Car and Two-Wheeler Loans Too
There is also good news for customers planning to buy a car or a two-wheeler. Union Bank has reduced interest rates on vehicle loans by 0.40%. The starting interest rate for vehicle loans will now be 7.50% per annum, down from 7.90% per annum. This is expected to boost demand in the auto sector.
Biggest reduction on personal loans
Union Bank of India has offered the biggest relief on personal loans taken for individual needs. The interest rate on personal loans has been reduced by 1.60%. It will now start at 8.75% per annum, down from 10.35% per annum. This reduction will benefit customers who want to take loans for marriage, medical treatment, or other personal expenses.
Additional discount on Green Finance
In addition, the bank is also offering an additional discount of 0.10% per annum on eligible home loans and vehicle loans to promote 'Green Finance'. This discount is being offered to encourage environmentally friendly projects and vehicles.
What does this mean for customers?
Experts believe that this reduction in interest rates creates a favorable environment for borrowing. If you are planning to buy a new home, a vehicle, or take a personal loan, this might be the right time. However, it is important to consider your income, EMI capacity, and long-term financial planning before taking a loan.
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