New Delhi: State-run Bank of Baroda on Friday cut home loan interest rates by 25 basis points to 8% and scrapped processing fee as part of a limited-time promotion.

BoB’s rate, which is 8.25 percent, is lower than that of segment leaders SBI and HDFC, whose new rate is 8.40 percent and will be in effect till the end of December. According to BoB, the new rate will be in effect from Monday and will last until 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 25bp discount on the interest rate, we are also waiving processing charges completely,” HT Solanki , managing director of mortgages and retail assets at the bank, said.

According to him, the special rate depends on the borrower’s credit history and the new rates would also be in effect for people who want to transfer balances.

Last month, SBI and HDFC announced lower interest rates from 8.40% as part of their holiday promotions, despite the increase in interest rates.

SBI offers new home loan borrowers a discounted interest rate of up to 25 basis points (bps), bringing the entry rate down to 8.40%. The deal is valid till the end of January 2023, while HDFC is offering new rates 20 bps cheaper at 8.40% and valid till the end of November.


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