Bank of Baroda home loan: BoB follows SBI and Kotak Mahindra Bank, slashes home loan, car loan rates - know how to apply

Bank of Baroda is offering a waiver of 0.25 percent in the existing applicable rates for Baroda Home Loans and Baroda Car Loans.

Bank of Baroda is offering a waiver of 0.25 percent in the existing applicable rates for Baroda Home Loans and Baroda Car Loans. Image source: PTI

This festive season both public and private sector banks are in a competition to offer attractive interest rate offers to customers in retail loans.

Bank of Baroda is offering a waiver of 0.25 percent in the existing applicable rates for Baroda Home Loans and Baroda Car Loans. The bank's home loan rates start at 6.75 percent and car loan rates at 7 percent. It has also waived off processing fee on home loans.

Customers can apply for home or car loans by using the lender's mobile banking application or its website for instant sanction.

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On Thursday, the country’s largest lender State Bank of India (SBI) also reduced the home loan interest rates by 45 basis points and offered credit score linked home loans at just 6.70 percent, irrespective of the loan amount. Earlier a borrower availing a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15 percent.

Further, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried and a non-salaried borrower.

Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers. The lender has also waived off the processing fees completely and offers attractive interest concession based on the credit score of the borrower.

With this, the interest rates have been made equal for all categories of customers by eliminating the additional interest rate of 15 basis points on non-salaried customers.

While, last week Kotak Mahindra Bank had announced that it has reduced home loan interest rates by 15 basis points (bps) from 6.65 percent to 6.50 percent p.a. This special rate of 6.50 percent p.a. is a limited period festive season offer beginning September 10 and ending November 8, 2021.

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