Bank of Baroda (BoB) has launched a festival campaign, whereby it has cut home and car loan interest rates by 20 basis points (bps) and up to 10 bps, respectively.

Under the campaign, which will run up to 31st December, 2023, the public sector bank has also cut education and personal loan interest rates by 60 bps and 80 bps, respectively.

BoB will offer home loans from 8.40 per cent (8.60 per cent earlier) onwards, with a complete waiver of processing fees.

The Bank’s floating and fixed rate car loans will start at 8.75 per cent (8.85 per cent) and 8.70 per cent (8.75 per cent) onwards, respectively, with nil processing fees.

“On education loans, the Bank has introduced a special rate beginning at 8.55 per cent p.a., a discount of up to 60 basis points, and without collateral for students who have secured admissions in identified premier educational institutions in the country.

“Personal Loans start at 10.10 per cent p.a. – a discount of up to 80 basis points, with nil processing fee and higher loan limits up to Rs 20 lakh,” BoB said in a statement.

The Bank said it has introduced a fixed rate of interest option in personal and car loans, and borrowers can now choose between fixed and floating interest rates.

BoB underscored that the interest on its loans are calculated on the Daily Reducing Balance method and not on the Monthly Reducing Balance method, making it more affordable for borrowers.

Launches new savings accounts

The Bank launched four new savings accounts -- LITE Savings Account – a lifetime no minimum balance account; BRO Savings Account – a zero balance savings account for students (16 to 25 years); Parivar Account – a family savings account designed to meet the needs of the entire family and the NRI PowerPack Account.

BoB also launched a recurring deposit scheme, a BOB SDP (Systematic Deposit Plan) .

Regarding festival campaign, Debadatta Chand, Managing Director & CEO, said, “The festive season is upon us and we are already seeing the early signs of a spur in demand with high-frequency indicators such as car sales and credit card spends registering record highs.”