Bank Of Baroda Cuts Interest Rate On Home Loans

State-owned Bank of Baroda on Friday said it has reduced interest rate on home loans to 6.50 per cent per annum from 6.75 per annum for a limited period.

The new rates, which are linked to the borrower's credit profile, are applicable till June 30, 2022, the bank said in a release.

"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," it added.

The new rate is available for customers applying for fresh home loans as well as for balance transfers. It is available across all loan amounts and will be offered to borrowers having Cibil score of 771 and upwards.

It could be noted that the lender was offering home loans to specific borrowers at an interest rate of 6.5 per cent till March 31, 2022. It increased the rate to 6.75 per cent from April 1, 2022 and has again slashed it now. 

Incidentally, several banks including State Bank of India, Axis Bank and Kotak Mahindra Bank had earlier this week raised their marginal cost of funds based lending rates on loans, which would lead to higher home loan instalments.