Wed Dec 24 05:50:00 UTC 2025: Okay, here’s a summary and rewritten news article:

Summary:

Union Bank of India has announced a reduction in interest rates on select retail loan products, effective December 18, 2025. Home loan rates have been reduced by 30 basis points, now starting at 7.15% annually. Vehicle loan rates are down by 40 basis points, starting at 7.50% annually. Personal loan rates see a significant cut of 160 basis points, beginning at 8.75% annually. Eligible green finance home and vehicle loans can avail an additional 0.10% discount. This move comes after the Reserve Bank of India’s repo rate cuts and easing of GST rules for the automotive sector.

News Article:

Union Bank of India Slashes Home Loan Rates Ahead of New Year

New Delhi: In a welcome pre-New Year’s gift, Union Bank of India has announced a reduction in interest rates on key retail loan products, effective December 18, 2025. The move aims to boost consumer spending and make borrowing more affordable.

Home loan interest rates have been cut by 30 basis points, bringing them down to a competitive starting rate of 7.15% per annum. Vehicle loans will also see relief, with rates reduced by 40 basis points to a starting rate of 7.50% annually. The most significant reduction comes in personal loan interest rates, which have been slashed by a substantial 160 basis points, now beginning at 8.75% annually.

“These revised rates are designed to benefit our customers and reflect the current favorable monetary environment,” said a Union Bank of India spokesperson. The rates are subject to customer eligibility, credit profile, and other applicable terms and conditions.

Adding to the incentives, Union Bank of India is also offering an additional 0.10% discount on eligible green finance home and vehicle loans, promoting environmentally conscious borrowing.

The decision to lower interest rates follows a series of repo rate cuts by the Reserve Bank of India throughout 2025, including a 25 basis point reduction on December 5, bringing the rate to 5.25%. The government’s easing of GST rules for the automotive sector also played a role in enabling the bank to pass on savings to consumers.

This move by Union Bank of India is expected to spur growth in the retail lending sector and provide a boost to the Indian economy as the new year approaches.

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