BoI lowers home loan rates after slashing base rate

Written by fe Bureau | Mumbai | Updated: May 5 2012, 08:49am hrs
Public sector lender Bank of India has reduced interest rates on home loans in tandem with the reduction of 25 basis points in its base rate as on May 1.

Besides the loan rate cut, the bank would give housing loans of up to R30 lakh at the base rate. Earlier, the bank provided home loans of only up to R25 lakh at the prevailing base rate.

Under the reduced rates, the bank will give housing loans up to Rs. 30 lakh at the base rate of 10.50%. Loans above Rs. 30 lakh and up to Rs. 75 lakh will be given at 25 basis points above the base rate.

Loans over and above R75 lakh will attract an interest rate of 11.25%, which is 75 basis points higher than the base rate.

Following the Reserve Bank of India's cut in its repo rate by 50 basis points at its annual monetary policy on April 17, most banks have announced a reduction in their base rates.

Consequently, interest rates on all loans have come down.