Bank of Baroda Home Loan Interest Rates Reduced, But There is a Catch; Details Here

Bank of Baroda Home Loan: Public sector lender Bank of Baroda has cut down the interest rates of its home loans, the bank said on Friday, April 22. As per the new provisions, the bank has reduced its home loan interest rates by 25 basis points, or to 6.50 per cent per annum from the earlier 6.75 per cent per annum. However, this is for a limited period only, Bank of Baroda has said in a press release.

“Bank of Baroda (Bank), one of India’s leading public sector banks, today announced that it has reduced its home loan interest rates from 6.75 per cent pa to 6.50 per cent pa for a limited period. This special rate is applicable till June 30, 2022,” the press statement noted. Bank of Baroda home loan takers will also get a waiver on processing fees. Further, the Bank has also announced a 100% waiver on 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,” it said.

The new rate beginning at 6.50 per cent per annum is available for customers applying for fresh home loans as well as for balance transfers. This special rate is available across all loan amounts and is linked to a borrower’s credit profile, the public sector lender said further.

Interestingly, the Bank of Baroda home loan interest rate cut was announced days after the bank notified a hike in its MCLR or marginal cost of funds-based lending interest rates by 0.05 per cent, effective from April 12 this year. Bank of Baroda Home Loans are linked to an external benchmark ie RBI’s policy repo rate.

“A day before the Reserve Bank of India’s (RBI) monetary policy review, Bank of Baroda has announced that it has hiked its marginal cost-based lending rate (MCLR) by 5 basis points with effect from 7 June, 2018. Bank of Baroda is the latest lender to raise rates in the past few days,” the bank had said earlier.

Speaking about the reduction of home loan interest rates, HT Solanki, General Manager – Mortgages & Other Retail Assets, BOB said, “We have seen a significant pick-up in home sales over the last many months and we are delighted to extend the good times for home buyers with the introduction of a special, limited period interest rate offer of 6.50 per cent along with nil processing charges. We expect the momentum to continue, as customers seek to make the most of this very attractive offer to buy their dream home.”

The home loan portfolio of the Bank of Baroda jumped to 6.57 per cent to Rs 76,898 crore by end of December 2021. Additionally, the gross retail loan portfolio had increased by 11.13 per cent to Rs 1,28,960 crore as of December 2021.

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