Bank of Baroda has reduced its interest rates on home loans by 0.40% to 8.5%. The bank has also reduced the interest rates on MSME loans. The bank will now charge interest at the rate of 8.4% on MSME loans. Both the changes in interest rates will be effective from March 5, 2023 to March 31, 2023 only. Apart from this, the bank is also offering 100% off on processing charges on home loans and 50% off on MSME loans.

The new home loan rates are available for those applying for new loans, balance transfers and home improvement loans. The bank said that the interest rate will also depend on the credit score of the borrower. The bank has also digitized the process of applying for a home loan through its app or website. You can also visit the bank branch to apply for the loan.

These documents are needed to take a loan

a. For salaried individuals: Salary slips for the last 3 months / A copy of Form 16 for the last 2 years / Income tax return copy for the last 2 financial years. b. For self-employed: Business address proof, last 3 years’ income tax returns, balance sheet, business license and TDS certificate (Form 16A, if applicable) will be required.

2.50% hike in 6 bars
RBI is continuously increasing interest rates to control inflation. This has made everything from home loans to auto and personal loans costlier. Monetary policy meets every two months. The first meeting of this financial year was held in April. Then the RBI had kept the repo rate constant at 4%, but on May 2 and 3, the RBI called an emergency meeting and increased the repo rate by 0.40% to 4.40%.

This change in the repo rate took place after 22 May 2020. After this, in the meeting held on 6 to 8 June, the repo rate was increased by 0.50%. This increased the repo rate from 4.40% to 4.90%. Then in August it was increased by 0.50%, taking it to 5.40%. Interest rates went up to 5.90% in September. Then in December the interest rates reached 6.25%. Interest rates reached 6.50% in February.