State-run Bank of Baroda (BoB) on November 12, 2020, said it had reduced home loan interest rates by 25 basis points. With the cut, BoB will charge the lowest interest rate of 8.25% on fresh home loans as well as balance transfers. However, the new rate will be linked to the borrower’s profile— the best rates are available to applicants with an impressive credit score.
To be effective from November 14, 2022, the new rate will be valid till a limited offer period of December 31, 2022. The move by the public sector bank comes at a time when most banks have hiked interest rates with the RBI increasing repo rate to 5.90%.
On September 30, 2022, the banking regulator increased the repo rate for the fourth time in a row to tame inflation and arrest the fall the local currency. The 50-basis-point increase in the repo rate has brought it at 5.90%. Further hikes is the repo rate is also not ruled out.
Apart from the concession in rates, BoB is also offering complete waiver on the home loan processing fee as part of the deal.
“In a scenario where interest rates are on an upward trajectory, we are pleased to drop our home loan interest rates and introduce a special, limited period home loan interest rate offer of 8.25%, making home purchases that much more affordable for home buyers,” says H T Solanki, general manager, mortgages & other retail assets, BoB.
“We have seen robust growth in home loans this year with strong demand across cities and consumer confidence driving home sales. Such an attractive offer on home loans will give a further boost as people take advantage of this offer to realise their aspiration of owning their own home,” he added.
