Bank of Baroda has cut its home loan interest rates by 40 basis points for new applicants. The starting rate is now 8.00% per annum, down from the previous 8.40%.
The adjusted rates, which depend on a borrower’s credit score, are available for new home loans and home improvement loans. Loans of ₹15 lakh and higher qualify for the updated rates, as announced in the bank’s press release. Additionally, the bank is providing a 0.05% per annum concession for female borrowers and a 0.10% reduction for those under 40 years old on new properties and home loan transfers.
The bank further stated that its home loan balance transfer program allows customers from other banks and NBFCs to transfer their existing home loans to Bank of Baroda with minimal documentation and fast processing, enabling them to benefit from lowered interest rates.
On April 25, Indian Bank also announced a 25 basis points reduction in rates on home and vehicle loans, bringing them to 7.9% and 8.25%, respectively.
Following the Reserve Bank of India’s policy rate cut in early April, various banks have reduced both lending and deposit rates. The central bank has lowered the policy repo rate by a total of 50 basis points since February.
However, many borrowers are yet to experience the advantages of the Reserve Bank of India’s recent policy rate cuts, as reported earlier by RealtyDailyNews. Recent RBI data indicated that the one-year median marginal cost of fund-based lending rate (MCLR) remained stagnant at 9% in April. The MCLR has stayed at this rate since November, aside from a temporary rise to 9.05% in February.
