Union Bank of India : If you are planning to buy a house, a car, or take a personal loan, then this news is useful for you. Union Bank of India has announced a reduction in interest rates on select retail loans. The new rates have come into effect from December 18, 2025. After the recent monetary policy relaxations, most banks are making their loans cheaper. Now, Union Bank’s name has also been included in the list of banks doing so. Earlier, SBI, HDFC, and Canara Bank have also made their loans cheaper.
The bank has reduced interest rates on home loans, car loans, and personal loans. Home loan interest rates have been reduced by 30 basis points. The starting interest rate on home loans is now 7.15% per annum, down from 7.45% previously. This will reduce home buyers’ EMIs and make obtaining a loan easier.
At the same time, car loan interest rates have been reduced by 40 basis points. Now, the starting rate on car or other vehicle loans will be 7.50% per annum, down from 7.90% previously. This will directly benefit those planning to purchase a new vehicle.
Personal loan borrowers have received the biggest relief. Personal loan interest rates have been cut by a significant 160 basis points. The starting interest rate on personal loans now stands at 8.75% per annum, down from 10.35% previously. This could significantly reduce EMIs for those borrowing for medical, wedding, or other personal needs. Apart from this, the bank is also offering an additional discount of 0.10% per annum on Green Home Loan and Green Vehicle Loan to promote green finance.
This decision comes after the Reserve Bank of India cut the repo rate by 25 basis points on December 5, 2025. This was the fourth rate cut in 2025, bringing the total reduction to 1.25% for the year. This is why banks are offering cheaper loans to customers. However, these rates will depend on the customer’s credit profile and eligibility.