Union Bank of India has reduced interest rates on select retail loans, effective 18 December 2025.
This move makes borrowing more affordable for homebuyers, vehicle purchasers, and personal loan customers.
The bank is among the first in the sector to respond to recent monetary easing by lowering rates on Home Loans, Vehicle Loans, and Personal Loans.
New Loan Rates
Under the revised structure:
Home Loans: Reduced by 30 basis points, now starting at 7.15% per annum (previously 7.45%).
Vehicle Loans: Reduced by 40 basis points, now starting at 7.50% per annum (previously 7.90%).
Personal Loans: Reduced by 160 basis points, now starting at 8.75% per annum (previously 10.35%).
Additionally, the bank offers a 0.10% extra concession on eligible Green Finance Home Loans and Vehicle Loans, encouraging environmentally friendly investments.
Why the Rate Cuts?
The reductions come after monetary easing by the Reserve Bank of India (RBI).
On 5 December 2025, RBI cut the repo rate by 25 basis points to 5.25%, marking the fourth rate cut of the year.
The cumulative reduction in 2025 totals 125 basis points.
The government also eased GST norms for the automotive sector, which supports vehicle buyers further.
What This Means for Borrowers
With lower interest rates, borrowers can now:
Save on monthly EMIs for home, vehicle, and personal loans
Access more affordable financing options
Benefit from additional concessions for green loans
The revised rates are applicable from 18 December 2025 and depend on customer eligibility, credit profile, and other terms and conditions.
