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Bank of Baroda has lowered its home loan interest rates to 8% per annum from the earlier 8.40%, as announced earlier this week. The revised rate applies to loans beginning at INR 15 lakh, with additional benefits such as a 0.05% concession for women and a 0.10% concession for borrowers under 40. This move comes as part of BoB's strategic push to expand its retail loan book and offer more competitive terms amid a stable monetary climate. The rate cut may trigger similar moves from other lenders, enhancing affordability in the housing sector.
The interest rate on home loans at Bank of Baroda (BoB), one of the top public sector banks in India, has been significantly lowered. It was previously 8.40% annually, but it is now only 8%. This move, made earlier this week, marks a renewed push by the bank to make housing finance more accessible and affordable for a wider section of society. Advertisement
The revised rate applies to both home purchase and home improvement loans starting from INR 15 lakh. With this development, BoB has positioned itself as one of the most competitive lenders in the housing finance segment, especially at a time when major private sector competitors continue to maintain higher rates. To illustrate, ICICI Bank's one-year MCLR stood at 9.10% as of early 2024, while HDFC Bank's range was between 8.80% and 9.30% for comparable tenures.
To make the offer more inclusive, the bank has also introduced targeted concessions for select borrower segments. Women applicants are eligible for an additional 0.05% reduction in the interest rate, while those under 40 years of age can benefit from a further 0.10% concession. Bank officials indicated that these incentives have been designed to encourage early home ownership among young professionals and to support women in securing property assets.
BoB's latest move comes in the backdrop of the Reserve Bank of India maintaining a steady interest rate environment, encouraging banks to pass on the benefits of a stable monetary policy to end-users. Analysts believe this may set a precedent, pushing other lenders to follow suit in the coming months.
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