Public sector bank Bank of Baroda today announced the reduction of home loan interest rates by 40 basis points (bps) to 8.50% per annum.
The new home loan rate is available to borrowers applying for new home loans, balance transfers, and home improvement loans. The rate is tied to a borrower’s credit score.
Furthermore, the bank also announced that it has lowered interest rates on MSME loans from 8.40% per annum.
The Bank added that both offers will start on March 5, 2023 and will be valid for a limited period until March 31, 2023.
In addition to lowering its interest rates, the bank added that it is offering a 100% waiver on processing fees for home loans and a 50% waiver on processing fees on MSME loans.
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Ajay K Khurana, Executive Director of Bank of Baroda, said: “The bank is pleased to lower home loan interest rates and introduce a very special offer for a limited period. The supply makes home purchases more affordable for home buyers in the current scenario in which interest rates have risen sharply. The reduction in interest rates for the MSME sector will further support aspiring entrepreneurs and finance their growth ambitions.”
Meanwhile, home loan rates rose as the Reserve Bank of India announced a 25 basis point increase in its Repo rate to 6.5% in its latest MPC.
Repo rate is the rate at which the RBI lends money to commercial banks.
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