The Hindu Business Line : Bank of Baroda cuts home loan rates

MUMBAI: Public sector Bank of Baroda on Saturday reduced interest rates on home loans by 0.5 per cent triggered by a need to realign with the industry trend. The reduction, second by the bank in less than two months, is for all fresh loans sanctioned on or after October 15.

Earlier in August, Bank of Baroda had reduced interest rates on home loans by an equal percentage. For floating rate options of loan upto Rs 20 lakh, the rates vary from 10-10.5 per cent for different periods while for fixed it was 11-11.5 per cent. Lo ans of more than Rs 20 lakh will have floating interest rates of 10.25-10.75 per cent and fixed rate of 11.25-11.75 per cent, the bank said.

Unlike banks like SBI and ICICI, the reduction by BoB is not under a festive offer and was subject to review on the demand and the cost of funds of the bank, Bank of Baroda GM Retail Nandan Shrivastava told PTI.

"The reduction is not like a festive offer for a limited period. We will take a call as and when required looking at the demand and cost of funds,'' he said.

On two reductions in a short duration, Mr Shrivastava said: "The first realignment was in line with what was happening in the industry then... the credit offtake was sluggish''. However, today's trigger was to realign with our peer banks like State Bank of India who have reduced interest rates on home loans,'' he added. - PTI

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