The race to shore up retail assets by cutting interest rate is gathering pace among public sector lenders.
Mumbai-based public sector lender Union Bank of India has announced a sharp reduction in interest rates of vehicle loans. The bank will now offer vehicle loans at 10.95 per cent, instead of 12.5-13.5 per cent.
Another public sector lender, Corporation Bank, has also decided to cut the interest rates on home, car and education loans. It will also waive off the processing fees for these loans.
The scheme would be applicable for the next three months. It slashed interest rate on home and auto loans in the range of 25-75 basis points.
