Union Bank of India slashes lending rates by 25 basis points

Mumbai: Union Bank of India has cut lending rates across the board by 25 basis points with effect from 6 May 2003. The bank's revised prime-lending rate (PLR) is now 11 per cent from 11.25 per cent previously.

The bank has also decided to charge 1 per cent below PLR to the small-scale industries (SSIs) sector and for the agriculture sector for loans of up to Rs 2 lakh. The maximum rate of interest on loans above Rs 2 lakh to agriculture and SSIs will be 2 per cent over PLR, depending on the rating of the borrower. Credit to exporters will also be at the reduced rates.

Interest rates on deposits have also been reduced. For deposits of 15-29 days, the rate is 4.25 per cent; for 30-45 days 4.50 per cent; for 46 to 179 days 5 per cent; for 180 days to less than one year 5.25 per cent; for one year to less than two years 5.50 per cent; for two years to less than three years 5.75 per cent; and for three years and above 6 per cent.