Union Bank Links Home, Auto Loans To Repo Rates
State-run Union Bank on Friday became the latest state-run bank to offer repo-linked home and auto loans.
Already State Bank of India and seven other state-run banks have announced that their new loans and deposits will be priced to the repo-rate.
With this, the city-based lender will price home loans above Rs 30 lakh and under Rs 75 lakh to the repo rate and will be priced at 8.25 percent for those borrowers with good credit score.
Vehicle loans will be offered at 8.60 percent to borrowers with good credit score, the bank added.
This will provide better interest rate transmission to customers, the bank said.
While home loan linked to the repo rate is 35 basis points lower than the existing home loans, vehicle loan linked to repo rate is 40 basis points cheaper than the existing, the lender said.