Subsequent to reduction of bench mark lending rates i.e, MCLR rates by 55 bps to 75 bps across all tenors w.e.f. 07th January 2017, Bank of Baroda, India’s leading Public Sector Bank has reduced the rate of interest on Home Loans substantially by 70bps w.e.f. 07th January 2017. The revised rate of interest shall be applicable to all Loans sanctioned w.e.f. 07th January, 2017.
Accordingly, the rate of interest on Home Loans by Bank of Baroda now starts from 8.35% which is the lowest for Home Loans as on today among all public / private Banks/NBFCs /HFCs. On a Home Loan of Rs.50 lacs, reduction in interest rate by 0.70% by Bank of Baroda will help a home buyer to save Rs. 2,496/- per month and approximately Rs. 9 lakhs during the loan tenure of 30 years.
In case of existing Home Loan borrowers of Bank of Baroda, who are not yet converted to MLCR rate structure can avail the benefit of reduced rate of interest rate by converting from Base Rate to MCLR without any additional charges.
Existing Home Loan borrowers of other Banks/HFCs can easily avail the benefit of reduced rate of interest by transferring the same to Bank of Baroda.
Similarly, the rate of interest on Car Loans and Mortgage Loans by the Bank also starts at the lowest from 8.85% and 10.35% respectively with reduction of MCLR rates w.e.f. 07th January, 2017.