UCO Bank to slash home loan rates by 50 basis points

New Delhi, Mar 7 (UNI) State-owned UCO Bank today said it plans to cut down home loan rates by 50 basis points for all loans up to Rs 20 lakhs.

''We have already cut down home loan rates by 50 basis points and may further cut down the rates by another 50 basis points,'' UCO Bank Chairman and Managing Director S K Goel told reporters here.

The bank will take a view on this in the board meeting to be held on March 15.

Yesterday, Finance Minister P Chidambaram had said as there was a public demand to slash home loan rates, especially for loans up to Rs 20 lakh, banks should take a call.

The HDFC bank set the ball rolling by bringing 25 basis points cut in its retail prime lending rate to 13.75 per cent with effect from February 1. This has put pressure on other lenders too.

The State Bank of India, currently, charges between 10-11.5 per cent for loans up to Rs 20 lakh.

Loans up to Rs 20 lakh constitute nearly 80 per cent of the total housing loan portfolio.

UNI PDT SG RN1443