Mumbai: Bank of Baroda (Bank) has reduced its education loan rates by 60 basis points and home loans by 20 basis points as part of its festival offer.
Following the reduction, the bank’s home loans will be available starting at 8.40% with a waiver of processing fees. This is in line with the rates offered by the State Bank of India, which is the lowest among banks.
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On Education Loans, the bank has introduced a special rate beginning at 8.55% p.a., a discount of up to 60 basis points, and without collateral for students who have secured admissions in identified premier educational institutions in the country.
The bank also offers discounts on its auto loans, where the interest rates begin at 8.70% with zero processing fee. Currently, SBI India offers the cheapest auto loans at 8.65%. The bank’s personal loans start at 10.10%, a reduction of 80 basis points after applying the festival offer.
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According to BoB, the bank’s loans are more affordable as it calculates interest on the daily reducing balance method and not on the monthly reducing balance method.
The bank has introduced four new savings account schemes as part of its festival offering. These include the Bob LITE Savings Account – a lifetime `no minimum balance’ account; the BOB BRO Savings Account – a zero balance savings account for students (16 to 25 years); a family savings account; and an NRI account for non-residents.
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“We are already seeing the early signs of a spur in demand with high-frequency indicators such as car sales and credit card spends registering record highs. Bank of Baroda’s festive campaign ‘BOB Ke Sang Tyohaar Ki Umang’ brings together a suite of attractive offerings across savings accounts, loans, and credit & debit cards, said Debadatta Chand, MD & CEO, Bank of Baroda.
