Bank of India has brought major relief for its customers. The bank has reduced interest rates on home loans, education loans, and deposit schemes.
Additionally, it has removed the penalty for not maintaining the minimum balance in savings accounts.
Earlier, banks like PNB, SBI, and Bank of Baroda offered this benefit. Now, Bank of India has joined that list. These new rules are effective from 7 July 2025.
Home Loans Made Cheaper
The bank has cut home loan interest rates by 50 basis points (0.50%).
Now, the minimum interest rate starts at 7.35% per annum, based on the customer’s CIBIL score. This new rate is valid for both new and existing loans.
Lower Rates on Education Loans
Education loans for studying at top higher education institutes in India will now come at an interest rate of 7.5% per annum.
This will make higher education more affordable for students by reducing the cost of borrowing.
Car and Other Retail Loans Also Reduced
Bank of India has also cut interest rates by 50 basis points on several retail loans, including car and vehicle loans. This will make it easier and cheaper for customers to get these loans.
No More Minimum Balance Charges
The bank has completely removed the penalty charges for not maintaining a minimum balance in any savings account.
Now, even if there is less than the required balance, customers won’t be charged extra.
Interest Cut on Green Deposits
The Green Deposit Scheme, which is a special 999-day scheme, will now offer 6.7% interest per annum, down from 7%.
This new rate applies to deposits ranging from Rs 1 lakh to Rs 10 crore.
The bank has also lowered the interest rate on savings deposits up to Rs 1 lakh from 2.75% to 2.5% per annum. There is no change in the interest for deposits above Rs 1 lakh.
Reason Behind These Changes
According to the bank, these updates follow the RBI’s recent move to reduce interest rates. The goal is to support loan growth and offer better services to customers.
These decisions by Bank of India will directly benefit customers—especially those planning to take home or education loans.
Also, people with small savings accounts will gain from the removal of minimum balance charges.
