Bank of Baroda has announced a further reduction in its home loan interest rates, bringing them down by five basis points to 7.45% per annum with immediate effect, the lender said in an exchange filing.
In a move aimed at boosting affordability and credit growth, the public sector lender has also waived the processing fee for new home loan applicants. This follows a previous rate cut in June, when the bank reduced its home loan rate from 8.00% to 7.50%.
This means that borrowers with floating-rate home loans linked to the repo rate or external benchmarks will see reduced EMIs, either immediately or at the next reset date.
Lower interest rates and nil processing fees will also make home ownership more accessible, especially for first-time buyers.
This is in response to the Reserve Bank of India's cumulative 100 bps repo rate cut, including a significant 50 bps cut last month.
Since then, several banks including Punjab National Bank, State Bank of India, Indian Bank, Canada Bank and other public sector banks have also cut interest rates on home loans.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.