THIS bank slashes home loan interest rate for limited period

Bank of Baroda on Friday said it has reduced the interest rate on home loans to 6.50 per cent per annum from 6.75 per annum for a limited period.

The new rates, which are linked to the borrower's credit profile, are applicable till June 30, 2022, the state-owned bank said in a release, news agency PTI reported.

"We have seen a significant pick-up in home sales over the last many months and we are delighted to extend the good times for home buyers with the introduction of a special, limited period interest rate offer of 6.50 per cent along with nil processing charges," its general manager (mortgages and other retail assets) HT Solanki said in a release.

READ | RBI announces new rules for credit, debit cards, check here

The new rate is available for customers applying for fresh home loans as well as for balance transfers. It is available across all loan amounts and will be offered to borrowers having Cibil score of 771 and upwards.

It could be noted that the lender was offering home loans to specific borrowers at an interest rate of 6.5 per cent till March 31, 2022. It increased the rate to 6.75 per cent from April 1, 2022 and has again slashed it now.

Earlier, the State Bank of India (SBI) and Axis Bank have increased their home loans interest rates as both had increased marginal cost of lending rate (MCLR). MCLR is a benchmark interest rate, which is the minimum rate at which banks are allowed to lend.

The country’s largest lender State Bank of India (SBI) hiked MCLR by 10 basis points (bps) across all tenors, with effect from April 15, 2022. While Axis Bank hiked its MCLR by 5 basis points across tenures, with effect from April 18.

(With PTI inputs)

READ | Netflix ‘jugaad’ set to end, CEO Reed Hastings announces plans to restrict password sharing