Bank of Baroda announces festival campaign: Reduces interest rates on home and car loans and offers special discounts

Bank of Baroda (BoB) has launched a festival campaign where it has reduced home and car loan interest rates by 20 basis points (bps) and up to 10 bps respectively.

As part of the campaign, which runs until December 31, 2023, the public sector bank has also reduced interest rates on education and personal loans by 60 and 80 basis points respectively.

BoB offers home loans starting at 8.40 percent (previously 8.60 percent), with complete waiver of processing fees.

The bank’s variable and fixed rate car loans will start at 8.75 percent (8.85 percent) and 8.70 percent (8.75 percent) upwards, respectively, excluding processing fees.

“For education loans, the bank has introduced a special interest rate starting at 8.55 percent per annum, a discount of up to 60 basis points and no collateral for students who have secured admission to selected leading educational institutions in the country.

“Personal loans start at 10.10 percent per annum – a discount of up to 80 basis points, no processing fee and higher credit limits up to Rs 20 lakh,” BoB said in a statement.

The bank said it has introduced a fixed rate option for personal and auto loans and borrowers can now choose between fixed and variable interest rates.

BoB emphasized that interest on its loans is calculated using the daily reduction balance method rather than the monthly reduction balance method, making it more affordable for borrowers.

Opens new savings accounts

The bank has launched four new savings accounts: LITE Savings Account – a lifetime account with no minimum balance; BRO Savings Account – a zero balance savings account for students (16 to 25 years old); Parivar Account – a family savings account tailored to the needs of the entire family and the NRI PowerPack Account.

BoB has also introduced a recurring deposit scheme, a BOB SDP (Systematic Deposit Plan).

Speaking about the festival campaign, Debadatta Chand, Managing Director and CEO said, “The festive season is just around the corner and we are already seeing the first signs of a surge in demand as high-frequency indicators like car sales and credit card spending are recording record highs.”