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Bank of Baroda cuts home loan rates by 25 bps to 6.50% till June end

The bank will also give a 100 percent waiver on processing fees during this period.

April 22, 2022 / 06:35 PM IST
 
 
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State-owned Bank of Baroda has reduced home loan rates by 25 basis points to 6.50 percent for a limited period till June 30, the lender said in a release on April 22.

The bank will also give 100 percent waiver on processing fees during this period. This rate will be available for fresh loans and balance transfers both, said BoB.

"We have seen a significant pick-up in home sales over the last many months and we are delighted to extend the good times for home buyers with the introduction of a special, limited period interest rate offer of 6.50% along with nil processing charges. We expect the momentum to continue, as customers seek to make the most of this very attractive offer to buy their dream home,” said H.T. Solanki, general manager- mortgages and other retail assets at Bank of Baroda.

This is the second time that Bank of Baroda has cut interest rates for a limited period. It had last, on October 7, announced a 25 bps rate cut in its home loans to 6.50 percent.

Analysts said these temporary rate cuts can be seen as lenders' way to tap into credit demand before the Reserve Bank of India (RBI) raises interest rates in view of inflation and other macroeconomic developments.

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Further, majority of the RBI's Monetary policy committee (MPC) members emphasised on the rising risks of a persistently high inflation in the last round of monetary policy meeting, according to the minutes of the meeting released on April 22.

“The current geopolitical situation has led to an upward revision of our inflation projections for 2022-23. The estimates now point to inflation remaining above the upper tolerance band in the near-term even as growth projections have undergone downward revisions,” Reserve Bank of India Governor and head of the six-member Monetary Policy Committee Shaktikanta Das, said in the minutes of the panel’s latest meeting. “These are indicative of the sheer magnitude of the adverse exogenous supply and price shocks.”



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first published: Apr 22, 2022 06:35 pm
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