New Delhi: State-owned Bank of Baroda on Friday reduced its house loan interest rates by 25 basis points to 8% and eliminated the processing fee as part of a limited-time promotion.
BoB’s rate, which is 8.25 percent, is lower than that of the segment leaders SBI and HDFC, whose new pricing is 8.40 percent and will be in effect till the end of December. According to BoB, the new rate will be in effect beginning on Monday and last through 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.
According to him, the special rate is dependent on the borrower’s credit history and the new rates would also be in effect for individuals looking to transfer balances.
Last month, SBI and HDFC announced lower interest rates starting at 8.40% as part of their holiday promotions, despite rising interest rates.
SBI is providing new home loan borrowers with discounted interest of up to 25 basis points (bps), bringing the entry-level rate down to 8.40%. The deal is valid through the end of January 2023, while HDFC is providing new rates that are 20 bps cheaper at 8.40% and valid through the end of November.