Public sector lender Bank of Baroda on Friday announced a reduction in its interest rates on home loans by 25 basis points (bps) to 8.25%. The bank issued concessions on home loans coinciding with the wedding season. The lender had earlier announced several plans to capitalize on the festive season.
The bank, along with several PSU lenders, had completely waived processing fees on home loans. The waiver of application fees will continue until December 31, while the reduction in 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 lower our interest rates on home loans and introduce a special interest rate offer on term home loans from 8.25%, making real estate purchases much more affordable for buyers. We have seen robust growth in home loans this year with strong demand in cities and consumer confidence driving home sales,” HT said. Solanki, general manager of the bank.
This is one of the lowest and most competitive home loan interest rates in the industry, the bank said in a press release. Earlier, National Bank of India (SBI) had also cut its mortgage rates by 15 to 25 basis points for a limited period. For borrowers with a CIBIL score of 800, the bank offers home loans at 8.40%. Reduced rates are in effect until January 31.
Bank of Baroda has a home loan portfolio of Rs 74,308 crore as of September 30, comprising 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.