UCO Bank is set to slash interest rates on products such as home and education loans. Referring to this, 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 accordance with the new RBI ruling for home loans (to reduce the risk weight to 50 per cent on home loans up to Rs 30 lakh), the new rates for home loans will 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 total exposure of the bank to home loans as on April 30, 2008, was Rs 3,257 crore and housing loans posted a 15 per cent growth during the last financial year.

As of now, depending upon the term and the amount of the loan, floating interest rates in the category vary between 9.75 per cent and 11.75 per cent.

"We are looking at a growth of 20 per cent in home loan advances in the current financial year," Goyel added.

In the education loans category, UCO Bank had advanced education loans worth Rs 336 crore at the end of April 30, 2008, and 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.