Public sector bank Bank of Baroda (BOB) has reduced its home loan interest rate, as announced on Monday.
The new rate is now 8 percent per year, down from the previous 8.40 percent.
These updated rates are applicable to both new home loans and home improvement loans.
Existing Borrowers Already Benefited from Repo Rate Cut
According to a statement from BOB on May 5, 2025, the revised interest rate applies to loans of ₹15 lakh and above.
The rate also depends on the borrower’s credit score. The bank noted that existing borrowers had already gained from the Reserve Bank of India’s repo rate reduction.
Now, the bank is giving an extra 0.05 percent yearly discount to women borrowers and a 0.10 percent discount to borrowers under 40 years of age.
These benefits are available for ready-to-move homes, loan transfers, and more.
Home Buying Now More Affordable
Sanjay Mudaliar, Executive Director of Bank of Baroda, said, “With this lower interest rate, home buying becomes easier. We are also giving extra discounts to specific customer groups.
These new rates reflect our commitment to offering competitive home loan products and being a top choice for home buyers.”
Simplified Loan Transfer Option
BOB’s ‘Home Loan Balance Transfer’ scheme helps customers transfer their home loans from other banks or NBFCs easily.
The process is simple, with less paperwork and faster approval, allowing borrowers to take advantage of lower interest rates.
