Bank of Baroda lowers home loan rate by 25 bps to 8.25%; Check how much it impact borrowers

New Delhi: State-owned Bank of Baroda on Friday lowered its home loan rates by 25 basis points to 8.25 per cent and also waived the processing fee under a limited period offer. At 8.25 per cent, BoB's rate is lower than that of the segmental leaders SBI and HDFC, whose new pricing is at 8.40 per cent, announced before Diwali and lasting end-December.

BoB said the new rate will be applicable from next Monday and effective till the end of December.

"Ours is one of the lowest and most competitive home loan interest rates in the industry now and in addition to the 25 bps discount on the interest rate, we are also waiving off the processing charges completely," HT Solanki, general manager --mortgages & retail assets at the bank, said.

The new rates will also be applicable for those seeking balance transfers and the special rate is linked to the borrower's credit profile, he added.

"We have seen a robust growth in home loans this year with strong demand across cities and consumer confidence driving home sales. We expect this discounted rate to give a further leg-up to the already high demand," he said.

Last month, despite rising interest rates, SBI and HDFC announced discounted interest rates beginning at 8.40 per cent as part of their festive offerings. SBI is offering the discounted interest of up to 25 bps to new home loan borrowers, making the entry level rate at 8.40 per cent and the offer will run up to end January 2023 while HDFC offered new rates 20 bps lower at 8.40 per cent and is valid up to end of November.