Public sector lender Bank of Baroda on Friday announced reduction in its home loan interest rates by 25 basis points (bps) to 8.25%. The bank has issued sops on home loans coinciding with the marriage season. The lender had earlier announced several schemes to capitalise on the festive season.
The bank, along with several PSU lenders, had completely waived processing fees on home loans. The waiver on processing fees will continue till December 31, while the lower interest rates on home loans will be effective from November 14 to December 31.
“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%, making home purchases that much more affordable for homebuyers. We have seen a robust growth in home loans this year with strong demand across cities and consumer confidence driving home sales,” HT Solanki, general manager of the bank, said.
This is one of the lowest and most competitive home loan interest rates in the industry, the bank said in a press release. Earlier, State Bank of India (SBI) had also slashed its home loan rates by 15-25 bps for a limited period. For borrower with a CIBIL score of 800, the bank is offering home loans at 8.40%. The discounted rates are effective till January 31.
Bank of Baroda has a home loan book of Rs 74,308 crore as on September 30, consisting of 60% of its total retail loan portfolio. SBI has a home loan portfolio of Rs 5.2 trillion, comprising 57% of the domestic retail segment.