Home loans to get cheaper, after Bank of Baroda this bank cuts interest rate
India one of largest public sector lender, Union Bank of India (UBI) announced it has slashed its interest rate by 10 basis points for home loans above ₹30 lakh. This announcement comes after state-run Bank of Baroda (BoB) said it has reduced 15 basis points in its repo-linked lending rate to 6.85 per cent from 7 per cent earlier, effective November 1.
The bank in a release said women borrowers will get further concession of 5 basis points in rate of interest over and above this reduction for such loans. The new rates are effective from November 1.
The lender further said it will not be charging any processing fee on home loans till December 31, 2020. In addition to this, UBI also waived legal and valuation charges up to ₹10,000 in case of take-over of home loans by it.
The bank also said there are no processing charges for car and educational loans.Meanwhile, the Bank of Baroda's retail loans- home loan, mortgage loan, car loan, education loan and personal loan are linked to its Baroda Repo Linked Lending Rate (BRLLR).
Earlier, ahead of the festive season, the bank had announced concessions in interest rates on home loan and car loan.
With the current revision in BRLLR, home loan rates will start at 6.85 per cent and car loan rates at 7.10 per cent, mortgage loan rates at 8.05 per cent and education loan rates at 6.85 per cent, the bank said in a release.
With this revision, men borrowers with a credit score of above 700 will be offered home loans at 7 per cent.
(With inputs from PTI)
