Bank of Baroda Cuts Home, Car Loan Rates

India’s third largest public sector lender, Bank of Baroda (BoB) has reduced the interest rate on home and car loans. The bank is now offering home loans for a limited period—till September end—at the base rate—10.5 per cent, irrespective of the tenor.

The bank announced a 0.25% reduction in home loan rates across all categories and for both new as well as existing customers, in line with its state-run peers.

The bank has also reduced the interest rate on vehicle loans by 25 basis points (bps) for the same period. It will now offer car loans at 11.25 per cent and 11.75 per cent for the repayment period below five years and above five years, respectively.

Bank of Baroda will now charge an interest rate of 10.75 per cent, instead of the earlier 11 per cent, for the home loan takers below Rs 30 lakh for a repayment period up to five years. For the same loan it will charge an interest rate of 11 and 11.25 per cent, respectively, for the repayment period between 5–15 years and 15–25 years. Earlier it was charging 11.25 and 11.50 per cent, respectively, for the loans between 5–15 years and 15–25 years.

The new rates will be effective from Sept. 10, 2012.