BoB cuts interest rates on home and MSME loans taken till month end

With competition turning intense ahead of the year end, Bank of Baroda cut the interest rate on housing loans by 40 basis points (bps) on Sunday, to 8.5 per cent, linked to the borrower’s credit profile. The interest rate rebate is applicable on loans taken till the end of the financial year closing on March 31, 2023 (FY23).

The reduced rate for home loans will be available to those with a credit score of 751 and above. At present, home loans for the salaried class cost 8.9-10.50 per cent depending on credit profile, according to the BoB website.

The Mumbai-based public sector lender has also reduced interest rates on MSME loans starting at 8.40 per cent. This is also only available till end March 2023.

In addition to reducing its interest rates, the bank is also offering 100 per cent waiver on processing charges on home loans and 50 per cent on MSME loans.

Ajay K Khurana, Executive Director, BoB, said, “The offer will make home purchases more affordable for home buyers in the current scenario where interest rates have risen considerably. The reduction in interest rates for the MSME sector will further support aspiring entrepreneurs and finance their growth ambitions.

BoB’s home loan portfolio rose by 19.6 per cent year on year to Rs 91,989 crore in December 2022. Its MSME loans expanded by 11.1 per cent YoY to Rs 1,03,003 crore by end of December 2022.