Starting Monday, November 14, home buyers can get home loans at just 8.25 per cent interest rate as Bank of Baroda has reduced its home loan interest rates. The bank has cut its home loan interest rates by 25 basis points (bps) for select borrowers.
The cheaper home loan interest rates can only be availed by new borrowers and not those who already have a home loan with the bank. Customers who want to transfer their home loan balance to the state-owned bank will also be eligible for this special rate, BoB said in a press release. In addition to this, the lender has also done away with the processing charges for such loans.
“This is one of the lowest and most competitive home loan interest rates in the industry,” the lender said, adding that the special rate is available till year-end i.e. December 31, 2022.
“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 per cent, making home purchases that much more affordable for home buyers,” said H T Solanki, General Manager – Mortgages & Other Retail Assets, Bank of Baroda.
How will cheaper home loan interest rates benefit borrowers?
Consider that you are an individual planning to take a home loan of Rs 30 lakh at BoB’s special interest rate of 8.25 per cent per annum. The tenure for the loan being 20 years, you will have to pay an EMI of Rs 25,562.
This comes as a big relief as the public lender currently provides home loans starting at an 8.5 per cent interest rate per cent. For a home loan of Rs 30 lakh at an interest rate of 8.5 per cent per annum for a tenure of 20 years, the EMI will be Rs 26,035.
Meanwhile, the lender earlier this month rolled out the Baroda Tiranga Plus Deposit Scheme, which will offer higher interest rates of up to 7.50 percent a year for 399 days. The scheme is applicable on retail term deposits below Rs 2 crore. The scheme is already effective from November 1, 2022. Senior citizens will get an extra 0.50 percent a year.
