Bank of Baroda has reduced interest rate on home loans by 40 basis points for new borrowers. The new rate now starts from 8.00% per annum compared to 8.40% earlier.
The revised rates, linked to a borrower's credit score, are applicable on new home loans as well as on home improvement loans. Home loans of ₹15 lakh and above are eligible for the new rates, the bank said in a press release. Bank of Baroda is offering a concession of 0.05% per annum for women borrowers and 0.10% per annum for borrowers below 40 years of age, on ready properties, shifting of home loans, etc.
The bank said that its home loan balance transfer scheme offers an opportunity for borrowers of other banks and NBFCs to shift their home loans to Bank of Baroda with minimum documentation and quick processing, thus enabling them to take advantage of reduced interest rates.
On April 25, Indian Bank had announced a 25 bps reduction in interest rate on home and vehicle loans to 7.9% and 8.25%, respectively.
Banks have announced reduction in lending as well as deposit rate following the Reserve Bank of India's policy rate cut in early April. Since February, the central bank has reduced policy repo rate by a total of 50 basis points.
However, a large section of bank loan borrowers is yet to see the benefit from the Reserve Bank of India's two consecutive policy rate cuts, ET reported earlier. Data released by the RBI last week showed that one-year median marginal cost of fund-based lending rate (MCLR) remained unchanged at 9% in April. MCLR has been at 9% since November, except February when it rose to 9.05%, the data showed.
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The bank said that its home loan balance transfer scheme offers an opportunity for borrowers of other banks and NBFCs to shift their home loans to Bank of Baroda with minimum documentation and quick processing, thus enabling them to take advantage of reduced interest rates.
On April 25, Indian Bank had announced a 25 bps reduction in interest rate on home and vehicle loans to 7.9% and 8.25%, respectively.
Banks have announced reduction in lending as well as deposit rate following the Reserve Bank of India's policy rate cut in early April. Since February, the central bank has reduced policy repo rate by a total of 50 basis points.
However, a large section of bank loan borrowers is yet to see the benefit from the Reserve Bank of India's two consecutive policy rate cuts, ET reported earlier. Data released by the RBI last week showed that one-year median marginal cost of fund-based lending rate (MCLR) remained unchanged at 9% in April. MCLR has been at 9% since November, except February when it rose to 9.05%, the data showed.
