Big Relief For Borrowers! Union Bank Slashes Home, Car & Personal Loan Rates; Check New Rates

With effect from December 18, 2025, Union Bank of India has announced a drop in interest rates from its earlier applicable rates on a number of retail loan products. In order to enhance affordability for retail customers, the bank is one of the first in the industry to respond to recent monetary easing by cutting interest rates on home loans, vehicle loans, and personal loans.

Home loan interest rates will now begin at 7.15% annually, down 30 basis points from the previous rate of 7.45% annually, under the revised rate structure. Interest rates for vehicle loans have dropped by 40 basis points, from the previous benchmark rate of 7.90% p.a. to 7.50% p.a. Interest rates on personal loans have been sharply lowered by 160 basis points, from the previous rate of 10.35% p.a. to 8.75% p.a.

Union Bank of India is providing an additional 0.10% annual concession on eligible Green Finance Home Loans and Vehicle Loans in addition to the base rate cut. The modification takes place in the context of the year's softening monetary circumstances. On December 5, 2025, the Reserve Bank of India lowered the repo rate by 25 basis points to 5.25%. This was the fourth rate drop of 2025, bringing the total drop for the year to 125 basis points.

"With this revision, Union Bank of India aims to support homebuyers, vehicle purchasers and personal loan customers by lowering borrowing costs while continuing to maintain prudent lending standards. The revised rates are applicable from 18 December 2025 and are subject to customer eligibility, credit profile and other applicable terms and conditions," said Union Bank of India in a statement.

Meanwhile, Union Bank of India has also revised its interest rates on its fixed deposits of less than Rs 3 Cr. The latest revised rates are effective as of 05th December 2025.

Union Bank of India is now giving an interest rate of 2.75% on periods of 7-14 days and 3.00% on fixed deposits that mature in 15-30 days. Union Bank of India is now offering interest rates of 3.25% for fixed deposits with terms between 31 and 45 days and 4.40% for those with terms between 46 and 90 days. Fixed deposits from Union Bank of India that mature in 91-120 days will now earn an interest rate of 4.75%, while those that mature in 121-180 days will now earn an interest rate of 5%.

Union Bank of India is now providing an interest rate of 5.75% for tenures between 181 and 270 days, and 6.00% for those that mature between 271 and 364 days. Fixed deposits with a one-year maturity rate of 6.25% and those with a one-year to 399-day maturity rate of 6.20% are currently offered by Union Bank. Union Bank of India FDs that mature in 400 days will now receive an interest rate of 6.30%, while those that mature in 401 to 996 days will receive an interest rate of 6.00%.

Union Bank of India would give an interest rate of 5.95% for tenures of 997 days and 6.00% for those that mature in 998 days to three years. Following the most recent modification, the bank will provide an interest rate of 5.90% for terms ranging from three to ten years.

Senior citizen deposits are subject to an additional rate component of 0.50% over the standard rates shown above. Resident super senior residents are subject to an additional rate factor that is 0.75% more than the standard rate mentioned above.