Bank of Baroda slashes home loan rates for over Rs 15 lakh; check rates, compare with other banks
Bank of Baroda has revised the home loan rates starting at 8% for loans over Rs 15 lakh, dependent on credit scores, with recent reductions benefitting existing borrowers linked to the repo rate.
- May 6, 2025,
- Updated May 6, 2025 3:59 PM IST
Bank of Baroda has revised its home loan rates, offering a starting interest rate of 8% for fresh home and home improvement loans amounting to Rs 15 lakh and above. This adjustment is particularly beneficial for creditworthy borrowers, as the rates are linked to their credit profiles, providing more favourable terms for those with high credit scores.
Existing customers whose loans are tied to the repo rate have already experienced the advantages of a recent reduction in the repo rate, reflecting the bank's commitment to timely rate adjustments.
The interest rate for Bank of Baroda's home loans now ranges from 8% to 9.50% per annum for salaried individuals, while non-salaried applicants face rates between 8% and 9.60%.
These rates apply to both Baroda Home Loans and Home Improvement Loans, with variations depending on the borrower's credit score and the loan amount. Additionally, the bank offers discounts to certain segments, such as a 0.05% per annum concession for women borrowers and a 0.10% reduction for those under 40 years of age, as well as for balance transfers, fully completed properties, and government-approved housing projects.
The bank has also updated its Marginal Cost of Lending Rate (MCLR), effective from April 12, 2025, with the overnight MCLR set at 8.15% and the one-year MCLR at 9%. These rates are crucial as they influence interest calculations on loans and are adjusted in response to changes in the market and regulatory environment.
Here are the latest home loan rates of Bank of Baroda:
| Baroda Home Loan to Non-Staff Members | For Salaried | 8.00% p.a. to 9.50% p.a. |
| For Non-salaried | 8.00% p.a. to 9.60% p.a. | |
| Baroda Home Improvement Loan to Non-Staff Members | For Salaried | 8.00% p.a. to 9.50% p.a. |
| For Non-salaried | 8.00% p.a. to 9.60% p.a. | |
| Baroda Max Savings Home Loan – Up to ₹75 lakh | For Salaried | 8.00% p.a. to 9.50% p.a. |
| For Non-salaried | 8.00% p.a. to 9.60% p.a. | |
| Baroda Max Savings Home Loan – Above ₹75 lakh | For Salaried | 8.25% p.a. to 9.75% p.a.. |
| For Non-salaried | 8.25% p.a. to 9.85% p.a. | |
| Baroda CRE Home Loan | For Salaried | 8.25% p.a. to 9.75% p.a.. |
| For Non-salaried | 8.25% p.a. to 9.85% p.a. | |
| Baroda CRE Home Loan (Max Savings) – Up to ₹75 lakh | For Salaried | 8.25% p.a. to 9.85% p.a. |
| For Non-salaried | 8.25% p.a. to 9.85% p.a. | |
| Baroda CRE Home Loan (Max Savings) – Above ₹75 lakh | For Salaried | 8.50% p.a. to 10.00% p.a. |
| For Non-salaried | 8.50% p.a. to 10.10% p.a. | |
| Baroda Top Up Loan | For Salaried & Non-salaried | Linked Home Loan ROI + Strategic Premium (0.25%) + 0.60% |
Bank of Baroda also promotes digital home loans, which promise quick approvals in a few steps. These initiatives are part of the bank's broader strategy to streamline the loan process and attract a digital-savvy customer base. Furthermore, the bank ensures that its rates align with its Repo Linked Lending Rate (BRLLR), making them subject to changes based on internal policies and the borrower's CIBIL score. A risk premium of 0.05% is levied on customers who do not obtain credit insurance cover, ensuring the bank maintains a balanced risk profile.
As part of its competitive edge, Bank of Baroda faces competition from major banks such as State Bank of India and HDFC Bank, which also offer varied interest rates and customer incentives. For instance, HDFC Bank is known for its extensive R&D budget and customer service initiatives, while State Bank of India holds a significant market share with its widespread branch network. In this competitive landscape, Bank of Baroda's strategic pricing and discounts aim to enhance its appeal and secure a larger share of the home loan market.
Here are the home loan rates of other banks
| Banks | Starting Interest Rate (p.a.) | Processing Fees |
|---|---|---|
| Kotak Mahindra Bank | 8.65% onwards | Salaried: 0.5% + taxes; Self-Employed/Commercial: 1.0% + taxes |
| Union Bank of India | 8.35% onwards | 0.50% of loan amount |
| Bank of Baroda | 8.00% onwards | No processing fee; discounted upfront fee |
| Central Bank of India | 8.10% onwards | 0.50% up to Rs 20,000 + GST (waived till 31 March 2024) |
| Bank of India | 8.15% onwards | Nil |
| State Bank of India | 8.00% onwards | 0.35% of loan amount + GST |
| HDFC Home Loans | 8.70% onwards | Up to 0.50% or ₹3,000 + taxes, whichever is higher |
| LIC Housing Finance | 8.25% onwards | Varies by loan size; ranges from ₹15,000 to ₹50,000 + GST |
| Axis Bank | 8.75% onwards | Up to 1% or min. ₹10,000 + GST |
| Canara Bank | 8.15% onwards | 0.50% of loan amount |
| Punjab and Sind Bank | 8.35% onwards | Slab-based from Rs 1,000 to 0.25% of loan amount |
| IDFC First Bank | 8.85% onwards | Up to 3% of loan amount |
| Bank of Maharashtra | 7.85% onwards | No processing fees |
| Punjab National Bank | 8.50% onwards | Nil |
| IDBI Bank | 8.40% onwards | 0.50% (Rs 2,500 - Rs 5,000) |
| HSBC Bank | Contact the bank | 1% or Rs 10,000, whichever is higher |
| Karur Vysya Bank | 8.45% onwards | Rs 2,500–Rs 7,500 + GST based on loan size |
| Saraswat Bank | 8.15% onwards | Slab-based: NIL to 0.50% of loan amount |
| Jammu and Kashmir Bank | 8.75% onwards | 0.50% + GST (min Rs 2,000, max Rs 50,000) |
| South Indian Bank | 8.50% onwards | 0.50% + GST |
| Federal Bank | 9.90% onwards | 0.50% (min Rs 10,000, max Rs 20,000) |
| Standard Chartered Bank | 8.95% onwards | Contact the bank |
| Karnataka Bank | 8.75% onwards | Contact the bank |
| Sundaram Home Finance | 10.00% onwards | Up to 0.75% + GST |
| Dhanlaxmi Bank | 8.75% onwards | 1% (min Rs 10,000 + tax) |
| Tata Capital | 8.75% onwards | 2% + GST |
| Tamilnad Mercantile Bank | 8.60% onwards | 0.50% + GST |
| Bandhan Bank | 8.91% onwards | Contact the bank |
| Yes Bank | 9.00% onwards | 1.5% or Rs 10,000 (whichever higher) + GST |
| Hudco Home Loan | Contact the bank | Nil |
| Aditya Birla | 8.60% onwards | Up to 1% |
| GIC Housing Finance | 8.80% onwards | Rs 2,500 + GST |
| Shriram Housing | Contact the bank | Up to 2.5% + applicable taxes |
Source: Bankbazaar.com
Bank of Baroda has revised its home loan rates, offering a starting interest rate of 8% for fresh home and home improvement loans amounting to Rs 15 lakh and above. This adjustment is particularly beneficial for creditworthy borrowers, as the rates are linked to their credit profiles, providing more favourable terms for those with high credit scores.
Existing customers whose loans are tied to the repo rate have already experienced the advantages of a recent reduction in the repo rate, reflecting the bank's commitment to timely rate adjustments.
The interest rate for Bank of Baroda's home loans now ranges from 8% to 9.50% per annum for salaried individuals, while non-salaried applicants face rates between 8% and 9.60%.
These rates apply to both Baroda Home Loans and Home Improvement Loans, with variations depending on the borrower's credit score and the loan amount. Additionally, the bank offers discounts to certain segments, such as a 0.05% per annum concession for women borrowers and a 0.10% reduction for those under 40 years of age, as well as for balance transfers, fully completed properties, and government-approved housing projects.
The bank has also updated its Marginal Cost of Lending Rate (MCLR), effective from April 12, 2025, with the overnight MCLR set at 8.15% and the one-year MCLR at 9%. These rates are crucial as they influence interest calculations on loans and are adjusted in response to changes in the market and regulatory environment.
Here are the latest home loan rates of Bank of Baroda:
| Baroda Home Loan to Non-Staff Members | For Salaried | 8.00% p.a. to 9.50% p.a. |
| For Non-salaried | 8.00% p.a. to 9.60% p.a. | |
| Baroda Home Improvement Loan to Non-Staff Members | For Salaried | 8.00% p.a. to 9.50% p.a. |
| For Non-salaried | 8.00% p.a. to 9.60% p.a. | |
| Baroda Max Savings Home Loan – Up to ₹75 lakh | For Salaried | 8.00% p.a. to 9.50% p.a. |
| For Non-salaried | 8.00% p.a. to 9.60% p.a. | |
| Baroda Max Savings Home Loan – Above ₹75 lakh | For Salaried | 8.25% p.a. to 9.75% p.a.. |
| For Non-salaried | 8.25% p.a. to 9.85% p.a. | |
| Baroda CRE Home Loan | For Salaried | 8.25% p.a. to 9.75% p.a.. |
| For Non-salaried | 8.25% p.a. to 9.85% p.a. | |
| Baroda CRE Home Loan (Max Savings) – Up to ₹75 lakh | For Salaried | 8.25% p.a. to 9.85% p.a. |
| For Non-salaried | 8.25% p.a. to 9.85% p.a. | |
| Baroda CRE Home Loan (Max Savings) – Above ₹75 lakh | For Salaried | 8.50% p.a. to 10.00% p.a. |
| For Non-salaried | 8.50% p.a. to 10.10% p.a. | |
| Baroda Top Up Loan | For Salaried & Non-salaried | Linked Home Loan ROI + Strategic Premium (0.25%) + 0.60% |
Bank of Baroda also promotes digital home loans, which promise quick approvals in a few steps. These initiatives are part of the bank's broader strategy to streamline the loan process and attract a digital-savvy customer base. Furthermore, the bank ensures that its rates align with its Repo Linked Lending Rate (BRLLR), making them subject to changes based on internal policies and the borrower's CIBIL score. A risk premium of 0.05% is levied on customers who do not obtain credit insurance cover, ensuring the bank maintains a balanced risk profile.
As part of its competitive edge, Bank of Baroda faces competition from major banks such as State Bank of India and HDFC Bank, which also offer varied interest rates and customer incentives. For instance, HDFC Bank is known for its extensive R&D budget and customer service initiatives, while State Bank of India holds a significant market share with its widespread branch network. In this competitive landscape, Bank of Baroda's strategic pricing and discounts aim to enhance its appeal and secure a larger share of the home loan market.
Here are the home loan rates of other banks
| Banks | Starting Interest Rate (p.a.) | Processing Fees |
|---|---|---|
| Kotak Mahindra Bank | 8.65% onwards | Salaried: 0.5% + taxes; Self-Employed/Commercial: 1.0% + taxes |
| Union Bank of India | 8.35% onwards | 0.50% of loan amount |
| Bank of Baroda | 8.00% onwards | No processing fee; discounted upfront fee |
| Central Bank of India | 8.10% onwards | 0.50% up to Rs 20,000 + GST (waived till 31 March 2024) |
| Bank of India | 8.15% onwards | Nil |
| State Bank of India | 8.00% onwards | 0.35% of loan amount + GST |
| HDFC Home Loans | 8.70% onwards | Up to 0.50% or ₹3,000 + taxes, whichever is higher |
| LIC Housing Finance | 8.25% onwards | Varies by loan size; ranges from ₹15,000 to ₹50,000 + GST |
| Axis Bank | 8.75% onwards | Up to 1% or min. ₹10,000 + GST |
| Canara Bank | 8.15% onwards | 0.50% of loan amount |
| Punjab and Sind Bank | 8.35% onwards | Slab-based from Rs 1,000 to 0.25% of loan amount |
| IDFC First Bank | 8.85% onwards | Up to 3% of loan amount |
| Bank of Maharashtra | 7.85% onwards | No processing fees |
| Punjab National Bank | 8.50% onwards | Nil |
| IDBI Bank | 8.40% onwards | 0.50% (Rs 2,500 - Rs 5,000) |
| HSBC Bank | Contact the bank | 1% or Rs 10,000, whichever is higher |
| Karur Vysya Bank | 8.45% onwards | Rs 2,500–Rs 7,500 + GST based on loan size |
| Saraswat Bank | 8.15% onwards | Slab-based: NIL to 0.50% of loan amount |
| Jammu and Kashmir Bank | 8.75% onwards | 0.50% + GST (min Rs 2,000, max Rs 50,000) |
| South Indian Bank | 8.50% onwards | 0.50% + GST |
| Federal Bank | 9.90% onwards | 0.50% (min Rs 10,000, max Rs 20,000) |
| Standard Chartered Bank | 8.95% onwards | Contact the bank |
| Karnataka Bank | 8.75% onwards | Contact the bank |
| Sundaram Home Finance | 10.00% onwards | Up to 0.75% + GST |
| Dhanlaxmi Bank | 8.75% onwards | 1% (min Rs 10,000 + tax) |
| Tata Capital | 8.75% onwards | 2% + GST |
| Tamilnad Mercantile Bank | 8.60% onwards | 0.50% + GST |
| Bandhan Bank | 8.91% onwards | Contact the bank |
| Yes Bank | 9.00% onwards | 1.5% or Rs 10,000 (whichever higher) + GST |
| Hudco Home Loan | Contact the bank | Nil |
| Aditya Birla | 8.60% onwards | Up to 1% |
| GIC Housing Finance | 8.80% onwards | Rs 2,500 + GST |
| Shriram Housing | Contact the bank | Up to 2.5% + applicable taxes |
Source: Bankbazaar.com