Interest rates on Bank of Baroda home loans slashed, but there’s a catch; Details here

Bank of Baroda Home Loan: Public sector lender Bank of Baroda has cut interest rates on its home loans, the bank announced on Friday (April 22nd). In accordance with the new provisions, the bank cut its interest rates on home loans by 25 basis points, or to 6.50 per cent per annum from 6.75 per cent per annum previously. However, this is only for a limited period, Bank of Baroda said in a press release.

Bank of Baroda (Bank), one of India’s leading public sector banks, today announced that it has cut interest rates on home loans from 6.75% pa to 6.50% per year for a limited period. This special rate is applicable until June 30, 2022,” the press release reads. Bank of Baroda home loan takers will also enjoy a processing fee waiver. Additionally, the Bank has also announced a 100% waiver of processing fees during this period. With this, Bank of Baroda continues to offer one of the lowest and most competitive home loan rates in the industry,” he said.

The new rate starting at 6.50% per annum is available to customers applying for new home loans as well as balance transfers. This special rate is available for all loan amounts and is linked to the borrower’s credit profile, the public sector lender added.

Interestingly, the interest rate cut on Bank of Baroda home loans was announced days after the bank notified a 0.05% increase in its MCLR or marginal cost of interest rates on fund-based lending, starting April 12 this year. Bank of Baroda home loans are linked to an external benchmark, namely the RBI policy repo rate.

“One day before the Reserve Bank of India (RBI) monetary policy review, Bank of Baroda announced that it had raised its marginal cost-based lending (MCLR) rate by 5 basis points to effective June 7, 2018. Bank of Baroda is the latest lender to raise rates in recent days,” the bank said earlier.

Speaking about the reduction in mortgage interest rates, HT Solanki, Managing Director – Mortgages and Other Retail Assets, BOB said: “We have seen a significant recovery in home sales over the past few months and we are delighted to extend the good times for homebuyers with the introduction of a special limited time interest rate offer of 6.50% along with a zero processing fee. momentum continues as customers seek to make the most of this highly attractive offer to purchase their dream home.”

Bank of Baroda’s home loan portfolio increased by 6.57% on an annual basis to reach Rs 76,898 crore at the end of December 2021. Additionally, the gross personal loan portfolio had increased by 11.13 % to reach Rs 1,28,960 crore as of December 2021.

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Leslie M. Gill