For many, owning a home is a cherished aspiration, symbolizing a significant milestone in life’s journey.
Bank of India (BOI) has taken a step towards making this dream a reality by introducing attractive offers on home loans.
As part of its latest announcement, the esteemed Public Sector Bank has slashed interest rates on home loans, providing customers with a golden opportunity to secure their dream homes at affordable rates.
BOI has reduced the interest rate on home loans by 0.15 percent, bringing it down from 8.45 percent to 8.30 percent.
Notably, this offer surpasses the rates offered by the country’s leading banks, SBI and HDFC Bank. Interested customers can avail of this exclusive offer until 31st March 2024.
Understanding MCLR: A Key Component in Loan Dynamics
The Marginal Cost of Funds Based Lending Rate (MCLR), introduced by the Reserve Bank of India (RBI) on 1st April 2016, serves as a pivotal benchmark in determining lending rates.
It represents the minimum lending rate below which banks are not permitted to extend loans.
MCLR is influenced by various factors, including deposit rates, repo rates, operational costs, and cash reserve ratios.
Fluctuations in the repo rate directly impact MCLR, thereby influencing the interest rates on loans.
Consequently, changes in MCLR can impact borrowers’ Equated Monthly Installments (EMIs), either increasing or reducing their financial burden.
Empowering Sustainability: BOI’s Rooftop Solar Panel Initiative
In a bid to foster sustainable practices and environmental stewardship, BOI is extending its support towards rooftop solar panels.
As part of this initiative, BOI offers a special interest rate of 7 percent on loans for rooftop solar panels, accompanied by waived processing fees.
Homeowners seeking to install solar panels on their rooftops can avail of loans covering up to 95 percent of the installation costs, with a maximum repayment period of 120 months.
This initiative not only promotes renewable energy adoption but also encourages financial prudence among homeowners, aligning with BOI’s commitment to responsible banking practices.
