The Bank of India cuts home and auto loans by up to 50 basis points. Check Details | Photo credit: PTI
Bank of India (BOI) cut interest rates on home and auto loans ahead of the holiday season. The state bank cut mortgage interest rates by 35 basis points (1% = 100 basis points) and auto loan interest rates by 50 basis points.
BOI now offers a minimum interest rate on mortgage loans at 6.50% against 6.85% previously and at 6.85% on car loans against 7.35% previously.
The lender said the new rates are applicable on new loans as of October 18, 2021 and will continue until December 31, 2021 as part of the festive offer. Those looking for transfer loans can also take advantage of the reduced rates. In addition, the one-time processing fee will also be waived on home and auto loans until December 31, 2021.
Many banks such as SBI, ICICI Bank, Bank of Baroda, Punjab National Bank, Yes Bank and Kotak Mahindra have introduced reduced mortgage rates to take advantage of the coming holiday season.
SBI, which is India’s largest public sector bank, offers credit-linked loans starting as low as 6.70% regardless of the loan size.
PNB also cut its rates by 50 basis points for loans up to Rs 50 lakh, offering a minimum interest rate of 6.60%.
Bank of Baroda, as part of its special offer, reduced its home and auto loans by 25 basis points from 6.75%.
Yes Bank also lowered the minimum interest rate on home loans to 6.7% per annum as part of the festive offer. It has also introduced a special 90-day offer under which it will grant an additional 5 basis point discount to homebuyers of female employees. The effective rates are 6.65% at Yes Bank.
Private lender Kotak Mahindra is offering loan interest as low as 6.5% as part of the offer running from September 10 to November 8.
For ICICI Bank clients, loans start at 6.7% with a processing fee of Rs 1,100 for new home loans and balance transfer of home loans from other banks.