Bank of Baroda cuts home loan interest rates by 40 bps - check details

Bank of Baroda – a public sector bank – on Sunday announced the new interest rates on home loans. The state-run lender reduced the home loan interest rate by 40 basis points (bps) to 8.50 per cent. The bank has also cut loan interest rates on micro, small and medium enterprises (MSME) starting at 8.40 per cent per annum, Bank of Baroda (BoB) said in a statement.

The new interest rates will be effective from Sunday, March 5, 2023, and will be valid for a limited period till March 31 2023. 

The PSU bank is also offering 100 per cent waiver on processing charges on home loans and 50 per cent processing charges waiver on MSME loans, in addition to reduced rates.

The new home loan rate beginning at 8.50 per cent is available for borrowers applying for fresh home loans, balance transfers as well as for home improvement loans. 

The rate is linked to a borrower’s credit score. Ajay K Khurana, Executive Director, Bank of Baroda said, “The bank is pleased to drop its home loan interest rates and introduce a very special limited period offer of 8.50 per cent.”

“The offer will make home purchases more affordable for home buyers in the current scenario where interest rates have risen considerably. The reduction in interest rates for the MSME sector will further support aspiring entrepreneurs and finance their growth ambitions,” Khurana also said.

Customers can digitally apply for and get approval for a home loan within 30-minutes by logging in to the bob World mobile banking app or visiting the Bank’s website. 

Applicants can also apply for a loan by visiting any of Bank of Baroda’s branches across India. The interest rates on various loans have been on upward trend for the past one year, as the Reserve Bank of India (RBI) has been hiking the repo rates to address the issue of inflation for the past one year.

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