By Administrator_ India Capital Sands Escalating competition in the festive season, public sector lender Union Bank of India has slashed interest rate on home loans by 40 basis points. The minimum rate of interest now starts at 6.40 percent, instead of 6.8 percent earlier. The reduced rate will be effective from October 27. Union Bank said it is the all-time low rate for home loans for the bank. The new rates will be applicable to customers applying for new loans or those who wish to transfer existing loans, including balance transfers, Bank said in a statement. This cut is part of regular operation and not just limited to the festival period. While rate cut will dent margins to some degree, it is expected to give a push to the volume of business.