Zero Fees, Full Dreams: BoB’s Home Loan Offer Hits the Sweet Spot

In a relief to prospective homebuyers, Bank of Baroda has reduced the home loan rate to 7.45% per annum and waived all processing fees. The decision comes on the heels of the Reserve Bank of India's recent reduction of the repo rate by 100 basis points, and is aimed at encouraging homeownership as well as spurring the growth of credit in the housing sector.

Offer Highlights

New home loan rate of interest: 7.45% per annum from 7.50%

Processing charge: Waived in full for new borrowers

It is universal for salaried and nonsalaried workers.

Interest rate depends on loan size, length, and applicant credit rating

0.05% is the risk premium which could be charged to non-credit-insured borrowers

Policy Context

The move follows RBI's bold monetary policy easing that pushed the repo rate to 5.50%

Bank of Baroda had already reduced rates to 7.50% from 8.00% in June 2025

The bank continues to align its lending policy with shifting monetary policy in favor of consumers.

Borrower Benefits

Lower EMIs for new consumers, especially with good payment histories

Greater affordability for first-time buyers

Online application process accessible through the bank's website

No hidden fees or advance charges, which will add transparency and borrower-friendliness to the proposal

Market Impact

The move is bound to generate demand in the real estate market

Other state-owned banks would also follow suit, leading to a competitive lending market

Experts feel this may be a turning point for mid-income housing demand in urban and semi-urban markets

Sources: Goodreturns, MSN India, Livemint, The Economic Times, UNI India, The Statesman