why the interest rate reduced
HT Solanki, General Manager (mortgage and other real estate), Bank of Baroda said, “We have seen a significant pick-up in home sales over the past several months and we are offering a special, limited tenure interest rate of 6.50 per cent with zero processing fee. With this, we have come up with offers for home buyers. This is good news for home loan borrowers.
who will benefit
The new rate is available for customers applying for a new home loan as well as balance transfer. It is available in all loan amounts and will be offered to borrowers with a CIBIL score of 771 and above. Balance transfer means that your loan is running in any other bank and you get it transferred to Bank of Baroda.
Link to credit history
The new rate, which starts at 6.50 per cent per annum, will be offered to consumers who will apply for a new home loan as well as balance transfer. This particular rate is available for all loan amounts and is linked to the credit history of the borrower.
Axis Bank gave a blow
Bank of Baroda has gifted a cut in home loans to customers at a time when recently, after SBI, Kotak Mahindra Bank, Axis Bank also announced an increase in the Marginal Cost of Funds Based Lending Rate (MCLR). According to the Axis Bank website, the MCLR rates have been increased by 5 basis points for all tenors. The new rates are effective from April 18, 2022. That is, now the EMI of those who have taken a loan earlier will also increase. Also, those taking new loans will get loan at higher interest rate.
Axis Bank Rates
Axis Bank has increased the MCLR to 7.40 per cent for a period of one year. Similarly, the MCLR for two years and three years has been increased to 7.50 per cent and 7.55% respectively. The overnight, one-month, three-month and six-month MCLR has been increased by 0.05 per cent to 7.20 per cent, 7.30 per cent and 7.35 per cent, respectively. Axis Bank has increased it to 7.40 percent for one year, 7.50 percent for two years and 7.55 percent for three years. An increase in MCLR will generally increase the interest of the borrowers. SBI also increased its MCLR by 10 basis points for all periods with effect from April 15.