The United Commercial Bank Ltd (UCO Bank) has decided to reduce the interest rates it charges on home and education loans. Speaking about this new development, UCO Bank Chairman and Managing director S K Goyel, said, "Home and education loans will be our focus areas for the current financial year and hence we do not mind giving a little interest rate concession to our customers. Though the matter will be discussed at the next board meeting, we are likely to slash lending rates on these items by 25 to 50 basis points."
In line with RBI's decision to reduce the risk weight to 50 per cent on home loans up to Rs 30 lakh, there is an expectation of new rates for home loans to be applicable for advances up to Rs 30 lakh. "With home loans up to Rs 30 lakh coming under the priority sector lending, this will be our special focus area in the category," he added.
The Kolkata-based bank gave out home loans to the tune of Rs 3,257 crore as on April 30, 2008, with housing loans posting a 15 per cent growth during the last financial year.
"We are looking at a growth of 20 per cent in home loan advances in the current financial year," Goyel said.
Presently, floating interest rates in the category vary between 9.75 per cent and 11.75 per cent, depending upon the term and the amount of the loan.
In the education loans segment, UCO Bank advanced loans worth Rs 336 crore till April 30, 2008. The interest rates in this category range between 11.25 per cent and 11.75 per cent. During 2007-08, the bank posted a growth of 38 per cent in education loan advances.
UCO bank was established in 1943 in Kolkata. Today, UCO Bank has nearly 2000 branches and 34 regional offices spread all over India. The Bank also operates in two major international financial centres namely, Hongkong and Singapore.
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