Bank of Baroda shares gain after lender cuts home loan rates by 40bps

The state-owned Bank of Baroda (BoB) on Sunday slashed its home loan rates by 40 basis points (bps) to 8.5 percent interest rates to beat simmering competition.

The bank has also reduced its MSME loan interest rates starting at 8.40 percent.

Both the offers are with effect from March 5, and are valid for a limited period till March 31, BoB said in a statement.

At 9:34 hrs Bank of Baroda shares were quoting ₹174.75, up ₹1.80, or 1.04 percent.

This is one of the lowest and most competitive interest rates in the industry, the bank claimed.

The new home loan rate beginning at 8.5 percent is available for borrowers applying for fresh home loans, balance transfers as well as for home improvement loans, it said, adding, the rate is linked to a borrower’s credit score.

In addition to reducing its interest rates, the bank has also lined up 100 percent waiver on processing charges on home loans and 50 percent processing charges waiver on MSME loans, it said.