News | Bank of Baroda Slashes Home Loan Rate to 7.45% and Waives Processing Fee

Bank of Baroda Slashes Home Loan Rate to 7.45% and Waives Processing Fee

News

05 July 2025

2 min read

UBS Forums

In a strategic move to boost home loan demand, Bank of Baroda has reduced its floating-rate home loan interest rate from 7.50% to 7.45% per annum, effective immediately. Additionally, the bank is waiving processing fees for new home loan applicants, reinforcing its commitment to making home ownership more accessible and affordable.

This rate cut builds on the bank’s earlier policy in June, when it reduced the rate from 8.00% to 7.50%, in line with the Reserve Bank of India's repo rate reductions. With the current repo rate at 5.50%, Bank of Baroda’s base lending rate (BRLLR) now stands around 8.15%, including a spread of approximately 2.65%.

According to Sanjay Mudaliar, Executive Director at Bank of Baroda, “We continue to work towards our commitment of making home ownership more accessible. This latest reduction in our home loan interest rates is aimed at supporting the aspirations of citizens and stimulating credit growth.” He emphasised that the bank is aligning its lending strategy with the evolving monetary policy landscape and is committed to passing on rate benefits to customers .

The dual benefits of a reduced interest rate and zero processing fee are expected to:

Lower monthly EMIs, easing the burden on new home buyers.

Promote credit growth by encouraging new loan originations.

Enhance affordability in the housing sector amid current economic headwinds.

To apply, borrowers can use Bank of Baroda’s fully digital home loan platform or visit their nearest branch. The waiver applies to new borrowers only and may be subject to eligibility criteria, including credit score, loan amount, and tenure

As public sector banks race to transmit RBI rate cuts to customers, Bank of Baroda's aggressive stance positions it as a strong contender in the affordable housing finance space. Prospective buyers should act swiftly to take advantage of the current low-rate environment while it lasts.

Reference: LiveMint