Good news for borrowers from Union Bank of India, loans become cheaper
In a bid to provide relief to the borrowers post-lockdown, the Union Bank of India has reduced its External Benchmark Lending Rate (EBLR) by 0.40 per cent to 6.8 per cent.
In a bid to provide relief to the borrowers post-lockdown, the Union Bank of India has reduced its External Benchmark Lending Rate (EBLR) by 0.40 per cent to 6.8 per cent. This reduction in EBLR is expected to lead to a reduction in home loan, auto loan, bike loan, personal and other retail loans interest rates. This will also come as relief to the Micro Small and Medium Enterprises (MSME), who may feel the requirement of a loan post-lockdown. Revised loan interest rates will become applicable from 1st June, 2020.
The Union Bank of India informed about the development in a statement and said, "Union Bank of India today announced reduction in External Benchmark Lending Rate (EBLR) by 40 bps to 6.80% taking into consideration the recent change in Repo Rate by RBI. The revised rates will be applicable from 01st June 2020. Effective rates for various schemes shall be at EBLR+ Premium/Discount for the product."
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Union Bank of India had introduced EBLR based lending rates for all new floating rate loans to Retail and Micro & Small Enterprises segment, in line with RBI guidelines. Thus, w.e.f. 01.10.2019, all new floating rate loans to these segments are linked to RBI Policy Repo Rate. Medium Enterprises are also linked to RBI policy
Rate with effect from 01.04.2020.
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