BoB slashes rates to fuel home loan sales

Mumbai: The home loan portfolio of the state-owned lender, Bank of Baroda (BoB) is growing at an annual rate of 6.57 per cent.

Talking to Bizz Buzz, HT Solanki, General Manager(Mortgages & Other Retail Assets), Bank of Baroda, said: "With Rs 76,898 crore as on December 31, the segment has been recording a year-on-year growth of 6.57 per cent."

The bank has reduced its home loan interest rates from to 6.50 per cent per annum from 6.75 per cent per annum. This special rate is applicable till June 30. Further, the bank has also announced a 100 per cent waiver on processing fees during this period. With this, the bank continues to offer one of the lowest and most competitive home loan rates in the industry. The new rate beginning at 6.50 per cent per annum is available for customers applying for fresh home loans as well as for balance transfers. This special rate is available across all loans amounts and is linked to a borrower's credit profile.

Talking about the objective of the reduction in the interest rate, he said that the idea was to support and further boost the current momentum seen in the housing industry since Q2 of FY22.

Solanki further added that "we have seen a significant pick-up in home sales over the last many months and we are delighted to extend the good times for home buyers with the introduction of a special, limited period interest rate offer of 6.50 per cent along with nil processing charges. We expect the momentum to continue, as customers seek to make the most of this very attractive offer to buy their dream home."

Bank of Baroda's home loans are linked to an external benchmark or RBI's policy repo rate. Moreover, the bank has also gone for rate cut on car loans. With this, Bank of Baroda has lowered car loan interest rates to 7 per cent with concession in processing charges for a limited period up to June 30.