Bank of India has announced to cut its home loan interest rates, offering relief to new as well as existing borrowers. With this change, the home loan rate stands reduced from 8.10 per cent per annum to 7.90 per cent per annum based on their credit score.
This move is aimed at making home ownership more accessible to support customers meet their financial goals. The revised rates will come into effect from April 15, 2025, says the press release.
In addition to home loans, Bank of India has also cut interest rates across select existing retail loan products, including vehicle loan, personal loan, loan against property, education loan and Star reverse mortgage loan. This was announced soon after RBI on April 9 cut the repo rate by 25 basis points to 6 percent. The latest repo rate cut was the second in a row after the last rate cut in February.
Why did the Bank of India cut its home loan interest rate?
The state lender did this in the wake of the repo rate cut by RBI.
Which all loans saw an interest rate cut?
The bank has announced to cut the interest rate cut across categories such as vehicle loan, personal loan, loan against property and education loan, reads the bank’s press release.
Are these meant only for the new borrowers?
The new rates will be applicable for new as well as existing borrowers. But the rates will be applicable from April 15 i.e., Tuesday.
Which loans typically see a fall in interest rates after repo rate cuts?
The loans which are linked to the external benchmark rate (repo rate) see a fall. The loans which have fixed interest rates do not witness a reduction in rates of interest.
Is this mandatory for banks to pass on the entire benefit of rate cut to consumers?
Although the banking regulator has cut the repo rate by a total of 50 basis points in the past two MPC meets, how much of this cut is passed on to the consumer is decided by the banks. They can decide the extent to which this cut is passed on to consumers.
