In a customer-centric move aimed at encouraging home ownership and stimulating loan demand, the state-owned Bank of Baroda has announced a further reduction in its home loan interest rate. Effective immediately, the bank has cut its home loan rate by 5 basis points to 7.45% per annum and has also waived processing fees for new borrowers. This is the 2nd such rate cut in recent months, following the Reserve Bank of India's policy repo rate reduction.
The new rate revision follows a previous cut in June, when Bank of Baroda reduced its home loan rates from 8.00% to 7.50%. With the latest revision to 7.45%, the bank aims to enhance affordability for prospective homebuyers. “This latest reduction... is aimed at supporting the aspirations of citizens and stimulating credit growth,” said Sanjay Mudaliar, Executive Director at Bank of Baroda, as per news reports.
The offer is applicable to new borrowers, and specific terms and conditions can be found on the bank’s official website. The move reflects the lender’s commitment to passing on the benefits of lower policy rates to consumers.
As part of its broader strategy to promote easy access to housing finance, Bank of Baroda offers both digital and in-branch application options. The dual-channel approach is intended to simplify and accelerate the loan application process for all types of customers.
Majority-owned by the Government of India, Bank of Baroda serves over 165 million customers globally and operates across 17 countries. The bank’s efforts are aligned with national goals to improve housing accessibility and encourage formal credit penetration.
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As of 04 July 2025, Bank of Baroda share price closed at ₹240.79 per share, a decline of 0.63% from the previous closing price.
Bank of Baroda’s latest rate cut and fee waiver reflect a proactive approach to supporting the housing sector and promoting financial inclusion. By reducing the cost of borrowing and easing the application process, the bank is positioning itself as a competitive player in the home loan segment, aligned with RBI's monetary policy stance.
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Published on: Jul 5, 2025, 9:13 AM IST
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