Union Bank of India Introduces New Loan Schemes for Festive Season

Banks are gearing up for an upstick in business this festive season. While major-state owned banks have started promoting their schemes, private banks are on their way to announce any offers. During the festive seasons, banks see a major jump in business especially in retail segment – housing loans, vehicle loans, personal loans.

According to the Reserve Bank of India (RBI) data, retail credit expanded by an average of more than 13 per cent during September-December 2021; around 20 per cent during the same three-month period of 2022; and over 18 per mit during September-December of 2023.

Flagging this high growth in certain components of consumer credit, the RBI in November last year increased the risk weightings for consumer credit, including personal loans but excluding home loans, education loans, vehicle loans, and gold loans, by 25bps to125 per cent. This move led to a majority of banks calibrating growth in their unsecured portfolios.

1. Lenders are expecting a decent uptick in business during festival season.
2. Past two years, growth in retail credit during festival season was in late teens.
3. This year, lenders are expecting growth in early to mid teens

Having said this, Union Bank of India has launched varied schemes and incentives for its customers to avail on varied types of loans. Below are few incentives they offer for your easy reference.

• UNION BANK OFFERS THE MOST ATTRACTIVE INTEREST RATE IN HOME LOAN MARKET STARTING AT 8.35% BASED ON YOUR CIBIL SCORE
• This rate is valid for any quantum of loan- that is there is no upper limit for Union Home Loan
• Home loans available for new/old house flats /house as well as composite loans for purchase of plot and construction
• Waiver of legal and valuation charges upto Rs 10000 for takeover of Home Loans from other Financial Institutions
• Can be availed for a term upto 30 years
• There is no prepayment penalty
• 90% of agreement value is funded subject to LTV norms
• Moratorium period of upto 36 months for construction and upto 48 months for composite loans
• Festival Offer: Zero Processing Charges