Public sector bank, Bank of Baroda today announced the reduction in its home loan interest rates by 40 basis points (bps) to 8.50% per annum.
The new home loan rate is available for borrowers applying for fresh home loans, balance transfers as well as for home improvement loans. The rate is linked to a borrower’s credit score.
Further, the Bank also announced that it has reduced its MSME loan interest rates starting at 8.40% per annum.
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The Bank added that both offers are with effect from March 5, 2023 and are valid for a limited period till March 31, 2023.
In addition to reducing its interest rates, the Bank added that it is offering 100% waiver on processing charges on home loans and 50% processing charges waiver on MSME loans.
Ajay K Khurana, executive director, Bank of Baroda, said, “The Bank is pleased to drop its home loan interest rates and introduce a very special limited period offer. The offer will make home purchases more affordable for home buyers in the current scenario where interest rates have risen considerably. The reduction in interest rates for the MSME sector will further support aspiring entrepreneurs and finance their growth ambitions.”
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Meanwhile, the interest rate on home loans increased as the Reserve Bank of India in its latest MPC announced a rise of Repo rate by 25 basis points to 6.5 %.
Repo rate is the rate at which the RBI lends money to commercial banks.
