Mumbai: Union Bank of India has reduced the interest rates on its housing loans. The revised rates are 10.5 per cent (floating) for loans repayable within five years, and 11 per cent for loans that have a tenure of five years and above.

The borrowers have the option of locking into fixed rates as well, in which case the rates will be 11.5 per cent for loans up to Rs 10 lakh and 12 per cent for those above.

The bank gives loans of up to Rs 25 lakh for the construction or purchase of houses and up to Rs 10 lakh for repair work.