State-owned Bank of Baroda on Friday lowered its home loan rates by 25 basis points to 8.25 percent and also waived the processing fee under a limited-period offer. At 8.25 percent, BoB's rate is lower than that of the segmental leaders SBI and HDFC, whose new pricing is at 8.40 percent, announced before Diwali and lasting end-December.
"Ours is one of the lowest and most competitive home loan interest rates in the industry now and in addition to the 25 bps discount on the interest rate, we are also waiving off the processing charges completely," HT Solanki, general manager --mortgages & retail assets at the bank, said.
The new rates will also be applicable for those seeking balance transfers and the special rate is linked to the borrower's credit profile, he added.
"We have seen robust growth in home loans this year with strong demand across cities and consumer confidence driving home sales. We expect this discounted rate to give a further leg-up to the already high demand," he said.
Last month, despite rising interest rates, SBI and HDFC announced discounted interest rates beginning at 8.40 percent as part of their festive offerings. SBI is offering discounted interest of up to 25 bps to new home loan borrowers, making the entry-level rate 8.40 percent and the offer will run up to the end of January 2023 while HDFC offered new rates 20 bps lower at 8.40 percent and is valid up to end of November.
