BoB announces single rate of interest for home loans
Mumbai: State-run Bank of Baroda Tuesday announced a single rate of interest -- 10.25 percent -- for all its home loans.
The rate revision, which will be effective June 1, will be available to borrowers irrespective of tenor or quantum of the loan, a bank statement issued here said.
Banks typically charge lower interest rate for an amount of up to Rs 30 lakh, after which it goes up. They also differentiate the interest rate offering according to the tenor of the loan.
Both new as well as existing borrowers can avail the loans under the revised scheme, the statement said, adding that there are no conversion charges for existing customers of Bank of Baroda to get the benefit of reduced rate of interest.
With the corporate loans slowing down, a majority of the lenders are shifting focus to the retail segment, which is considered resilient.
The country's largest lender State Bank of India has the most aggressive interest rate offering at 9.95 percent for loans under Rs 30 lakh at present.