Bank of Baroda has announced a special home loan offering at 8.30% in terms of interest rates. The 1-year MCLR for the bank is presently at 8.30%. This rate is applicable up to tenors of 30 years for self employed or salaried professionals, irrespective of the home loan amount.
As per the bank’s statement, the lowest interest rates are applicable only for particular customer categories at most public sector banks like salaried female professionals looking for home loans below Rs.30 lakh. However, male entrepreneurs, for instance, who have good credit ratings, may pay interest rates of 8.50% or above if a loan above Rs.75 lakh is sought. Home loans are available at 8.35% from other lenders like LIC Housing Finance, HDFC Limited, Axis Bank and ICICI Bank.
SBI has already announced lowered home loan and auto loan interest rates of 8.30% and 8.70% last week. The 1-year MCLR has been lowered to 8.00% which represents a cut of 5 basis points. MCLR is the minimum rate under which financial institutions cannot offer loans to borrowers. The rate cut comes around 10 months with the earlier reduction coming on the 1st of January, 2017 after it received handsome deposits after demonetization.
Bank of Baroda has stated that mark-ups have not been added to the MCLR for its home loan borrowers with the best ratings. The bank is now focusing on customer centricity and is offering 1-year MCLR for home loans. The bank is now focusing on faster turn-arounds along with digital customer experiences.