Cheaper home loan from Bank of Baroda: Lowest rate starts from 8% for these borrowers

Bank of Baroda (BoB), one of India’s leading public sector banks, has cut home loan interest rates by 40 basis points (bps) for new borrowers. The bank’s home loan rates now start at 8.00% per annum, down from the earlier 8.40% p.a. for new borrowers, according to a Bank of Baroda press release on May 5, 2025.
In response to the Reserve Bank of India’s policy rate cut in early April, banks have announced reductions in both lending and deposit rates. The central bank has lowered the policy repo rate by 50 basis points since February.

The revised interest rate is applicable on fresh home loans and home improvement loans of Rs 15 lakh and above. The applicable rate is linked to the borrower’s credit score, offering better deals to creditworthy applicants. Importantly, existing borrowers whose loans are linked to the repo rate have already received the benefit of the recent repo rate reduction, thanks to the bank’s timely rate transmission.

Bank of Baroda, Kotak Mahindra Bank revise FD interest rates: Check latest rates in May 2025

Key features of Bank of Baroda Home Loans

· Interest rates starting at 8.00%* p.a.
Over and above the BRLLR, the bank typically charges a credit risk premium and hence the final home loan rate offered to borrowers with varying credit profiles may differ. The best rate is typically offered to only those borrowers who have the highest credit score. However, Bank of Baroda also offers interest rate concessions (i.e., discounts) on home loans under certain conditions, but only up to a limit—specifically, the bank’s minimum permissible rate of interest (ROI).

Here’s a breakdown of the concessions:

• 0.05% per annum discount for women borrowers.
• 0.10% per annum discount for borrowers who are below 40 years of age.
• 0.10% per annum discount for:

1. Home loan balance transfer (takeover) cases from other lenders.
2. Loans for fully completed properties.
3. Loans for Government-approved housing projects.

• · Takeover of home loans with minimum documentation.
• · Digital Home Loans with quick approval in few steps.

Latest Bank of Baroda home loan interest rates

For Baroda Home Loan or Home Improvement Loan, the interest rate ranges from 8.00% to 9.50% per annum for salaried individuals and 8.00% to 9.60% per annum for non-salaried applicants. Check for other types of home loans in bank of Baroda.

Note: All rates are linked to the Bank’s Repo Linked Lending Rate (BRLLR) and are subject to change based on credit score and internal policies.Rate of Interest is dependent upon Loan limit and CIBIL Score of the applicant/s.
Risk Premium of 0.05% will be levied for customers not obtaining credit insurance cover

Bank of Baroda MCLR
Bank of Baroda’s marginal cost of lending rate effective from April 12, 2025.

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