BoB slashes home loan rates; spices it up with zero processing fee
Major public sector unit lender, Bank of Baroda (BoB) has slashed home loan interest rates twice in quick succession -- once in May and then in July. Check the new interest rates and other concessions.
Kolkata: In order to trigger consumption, and thereby push up growth rates, Reserve Bank of India has cut the Repo Rate -- the key policy rate -- by jumbo 50 basis points in June and by 100 basis points between February and June. As a result interest rates -- both lending and deposit rates -- are tumbling all around. One of the top public sector lenders Bank of Baroda has slashed home loan rates for second time in three months.
It cut home loan rates to 8% in May after RBI cut the Repo Rate by 25 basis points each in February and April. After the 50 point cut in June, BoB again trimmed its home loan to 7.45% per annum. Also, it was accompanied with the decision to eliminate the processing fee altogether. The bank expects the move to drive credit growth.
The following is the trajectory of home loan interest rates of BoB since May 2025.
May 2025: Reduction from 8.4% to 8.00%
June 2025: Reduction from 8.00% to 7.50%
July 2025: Reduction from 7.50% to 7.45%
"We continue to work towards our commitment of making home ownership more accessible. This latest reduction in our home loan interest rates is aimed at supporting the aspirations of citizens and stimulating credit growth. Bank of Baroda continues to align its lending strategy with the evolving monetary policy environment with the intent to pass on rate benefits to customers, while contributing to the broader economic objectives of boosting loan demand,” Sanjay Mudaliar, executive director, Bank of Baroda has said.
The bank has said that anyone desirous of applying for a home loan can walk into any of its branches or can visit its website. Like all other banks. the process of sanctioning of a home loan depends on the credit score of the applicant and other parameters. The rates mentioned above is the minimum rate. It depends on a variety of parameters as to what is the rate that an individual can secure from the lender.
According to reports, there is a concession of 0.05% per annum for women borrowers and 0.10% per annum for borrowers who are below 40 years. If there are balance transfer cases in home loans there could be a 0.10% per annum (for fully completed properties and government projects), subject to certain parameters.