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Bank of Baroda reduces rate on housing loans news
Our Banking Bureau
02 March 2004

Mumbai: Effective 1st March, 2004, Bank of Baroda has decided to reduce the rate of interest on housing loans to individuals under floating rate option, making them one of the lowest in the entire industry.

For floating rate loans, the reduced rate structure (with monthly rests) would now be 7.50% p.a. for 5 year tenor; 8.00% p.a. for tenor above 5 years - upto 10 years; and 8.25% p.a. for tenor over 10 years.

The revised rate under floating rate option shall also be applicable to the existing borrowers who have availed housing loans under floating rate option.

Bank of Baroda''s existing housing loan customers will have the option to convert from fixed rate option to floating rate option subject to payment on outstanding balance @ 0.5% for every year of residual period of loan, subject to a cap of 2% of the amount outstanding.

Bank of Baroda''s housing portfolio jumped by Rs.652 crores in the nine months period ended 31st December, 2003, registering a growth of 40% with over 22000 new accounts. The Bank looks forward to accelerated growth in the housing loan segment with its interest rate as one of the lowest in the industry.


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Bank of Baroda reduces rate on housing loans