Public sector lender Union Bank of India today reduced interest rates on new home loans by 25 to 100 basis points. Similarly, interest rates for new car loans were reduced by 125 to 150 basis points.
The new rates would be effective from March 1, 2009. Car loans of up to three years would now be charged at 11 percent compared to previous 12.25 percent whereas for 3-5 years of loan an 11.25 percent interest will be charged compared to 12.25 percent earlier.