Finance Desk – In a move aimed at attracting new borrowers and rewarding creditworthy customers, Bank of Baroda has slashed home loan interest rates, now offering loans starting at 8% per annum for amounts ₹15 lakh and above. This reduction applies to both fresh home loans and home improvement loans, making it a timely opportunity for potential homeowners.
Key Highlights of the New Rates:
Interest rate range for salaried individuals: 8% – 9.50% p.a.
Interest rate for non-salaried individuals: 8% – 9.60% p.a.
Loan types covered: Baroda Home Loans and Home Improvement Loans
Linked to credit profile: Better credit score = lower interest rate
Discounts:
0.05% concession for women borrowers
0.10% reduction for:
Individuals under 40 years
Balance transfer cases
Fully completed properties
Government-approved housing projects
Repo Rate & MCLR-Based Lending
The bank has aligned its rates with the Repo Linked Lending Rate (BRLLR).
Recent repo rate cuts have already benefited existing customers.
Updated MCLR (from April 12, 2025):
Overnight MCLR: 8.15%
One-year MCLR: 9%
These adjustments ensure flexibility in interest rate changes based on market conditions and RBI policy moves.
Digital Push
To stay ahead in the competitive home loan segment, Bank of Baroda is promoting its digital home loan services, promising quick approvals and a simplified process—particularly appealing to tech-savvy customers.
Additionally, a 0.05% risk premium is levied on customers who opt out of credit insurance, allowing the bank to maintain balanced risk management.
Competition: How It Stacks Up
Bank of Baroda is competing closely with leading players like:
State Bank of India (SBI): Known for its extensive branch network and strong market share in home loans.
HDFC Bank: Offers customized services, backed by a large customer support and R&D setup.
By introducing flexible pricing, demographic-based discounts, and digital-first processing, Bank of Baroda aims to strengthen its position in India’s growing housing finance market.
