Tuesday, April 16, 2013

Union Bank Bullish on Home Loans, Comes Runner-Up in MCHI Exhibition

Union Bank has been accelerating its focus on the retail segment, especially on the home loan front in recent weeks. The retail push among public sector banks was pioneered by this Mumbai-based bank, which started employing an innovative marketing strategy that strived to transform the image of the bank to a more customer-friendly one.

The focus on home loans - arguably the largest long-term retail segment - was evident in the recently concluded MCHI-CREDAI Property 2013 exhibition, in which Union Bank was awarded runner-up prize (among banks and housing finance institutions) for Excellence in Innovative Marketing.

Despite the exhibition coming up against a backdrop of sluggish home sales, Union Bank's stall was visited by thousands of prospective homebuyers. The bank's current base rate is 10.25% and it offers floating rate loans up to Rs. 75 lakhs at the base rate itself. For loans above Rs. 75 lakhs to a maximum of Rs. 5 crore, the floating rate is at 10.50%, with tenure for both categories going up to 25 years.

Union Bank also offers attractive fixed-rate home loans.

The bank's innovative stall at MCHI-CREDAI was also visited by Sachin Bhau Ahir, Housing Minister of Maharashtra, who was received by Pravin K Bansal, General Manager (Retail Banking) at Union Bank.

GM Bansal, as well as Chairman & MD, D Sarkar, and Executive Directors, Suresh Kumar Jain & K. Subrahmanyam, have been taking proactive steps to boost the home loan business.

Minister Sachin was appreciative of the bank's innovative efforts in serving homebuyers and the industry. The bank had supported the event by being a Platinum Partner for the exhibition which was staged at Mumbai BKC's MMRDA Grounds.

Between 12000 to 15000 properties were on exhibition at the event by over 100 developers, and covered areas like Mumbai Metropolitan Region (MMR), Thane, Navi Mumbai, and Pune, as well as from Bangalore, Ahmedabad, Hyderabad, Chennai, & Kerala.

Properties ranging from 1/2/3/4/5 BHK and studio apartments, duplex, penthouses, row houses, bungalows, second homes, holiday homes, plots, shops, and office premises were displayed. Though many developers were not willing to cut prices substantially to survive the sluggishness, there were smart ones who offered better rates during the exhibition which were lower by Rs. 500 to Rs. 1000 per square feet.

Making the best use of such exhibitions is important for Union Bank as it vigorously proceeds to create a better share for retail loans in its portfolio, compared with the traditionally larger share of corporate loans.

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