The Union Bank of India reduced the education loan rates up to two percent. Apart from the good news in the education sector, home loan rates have also been reduced by 0.25 percent.
This has been done to attract retail customers and reach distribution targets in this fiscal year, 2011 March- 2012 April.
The interest range of education loan have been slashed in the range of 1.5 to 2%. For loans above Rs. 7.5 lakhs, the loan interest rate will be 12.75%. Housing loan interest rates are also slashed by 0.25% by Union Bank.
Also, Union Bank of India announced a fifty basis points discount for girl students. Female students will now be able to get education loans at 12.25% for loans up to Rs. 75 lakh and at the rate of 12% for loans above Rs. 75 lakhs.
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