Bank of Baroda cuts home loan rate to 8%, gives additional perks to women

Customers younger than 40 years to get 0.10% concession in rates as lender seeks to 'home ownership more affordable'

Bank of Baroda (BoB) has reduced interest rates for home loans to 8 per cent per annum from 8.40 per cent. The revised rates apply to new and home improvement loans of Rs 15 lakh and above and are linked to a borrower’s credit score.

 

The bank said in a statement the offer includes rate concessions of:

 

• 0.05 per cent for women borrowers 
• 0.10 per cent for borrowers younger than 40 years

 

The revised rates are available for fully completed properties, takeover or balance transfer cases, and government projects, subject to minimum rate guidelines.

 

“Bank of Baroda’s new reduced home loan rates will further make home ownership more affordable. We are also offering special concessions for specific important segments,” said Sanjay Mudaliar, executive director of the state-owned lender.

 

Focus on digital and balance transfers

 

BoB said its digital process promises quicker decisions on home loan applications. Existing borrowers from other banks and non-bank lenders can shift their loans to BoB with minimal documentation and benefit from lower rates under its Balance Transfer scheme.  ALSO READ | Indian Bank lowers home loan rate to 7.90%, vehicle loan to 8.25%

 

Industry trend

 

Bank of Baroda’s rate cut comes at a time when public and private lenders are competing for home loan customers. According to data provided by Policybazaar, here are home loan interest rates of other major lenders as of April 30:

 

• Union Bank of India: Starts at 7.85 per cent 
• State Bank of India: Beginning at 8 per cent 
• Punjab National Bank: Starting rate of 8.05 per cent 
• HDFC Bank: Begins at 8.50 per cent 
• ICICI Bank: Starts from 8.75 per cent

 

How to apply for the BoB home loan

 

Applicants can apply at their nearest BoB branch or online through the bank’s digital platform.