Public sector lender Bank of Baroda (BOB) has lowered its home loan interest rate. The bank shared this update on Monday. After the revision, the new interest rate for home loans is now 8 percent per year, down from the earlier 8.40 percent.
These revised rates apply to new home loans as well as home improvement loans.
Existing borrowers already got the benefit of repo rate cut
In a statement on May 5, 2025, Bank of Baroda said this interest rate is for loans of Rs 15 lakh and above.
The rate is also linked to the borrower’s credit score. The bank also mentioned that existing borrowers have already received the benefit of the Reserve Bank of India’s repo rate cut.
Now, the bank is offering an extra rebate of 0.05 percent per year for women borrowers and 0.10 percent per year for borrowers below 40 years of age. This benefit is available for ready-to-move properties, home loan transfers, and more.
Buying a home just became more affordable
Sanjay Mudaliar, Executive Director of Bank of Baroda, said, “With the reduced interest rate, buying a home will become more affordable. We are also giving special discounts to some key customer groups.
These new rates show our strong commitment to offering competitive home loan options and our goal to be the preferred housing loan provider.”
Easier loan transfer process
Bank of Baroda’s ‘Home Loan Balance Transfer’ scheme makes it simple for customers who have taken loans from other banks or NBFCs to shift their home loans to BOB.
The process involves minimal paperwork and faster approval, helping borrowers benefit from lower interest rates.