Bank Of Baroda Home Loan EMI: PSU Cuts Home Loan Interest Rates By 5 Bps, Offers Zero Processing Fee; Details

PSU lender, Bank of Baroda has reduced its home loan interest rates to 7.45%. This comes as good news to borrowers as their EMIs will be cheaper. Apart from this, Bank of Baroda has also announced a zero processing fee.

The latest reduction in rates is in line with the Bank's commitment to making home loans more affordable for its home loan borrowers and driving credit growth.

"We continue to work towards our commitment of making home ownership more accessible. This latest reduction in our home loan interest rates is aimed at supporting the aspirations of citizens and stimulating credit growth," said Sanjay Mudaliar, Executive Director, Bank of Baroda.

He added, "Bank of Baroda continues to align its lending strategy with the evolving monetary policy environment with the intent to pass on rate benefits to customers, while contributing to the broader economic objectives of boosting loan demand."

Bank of Baroda Latest Home Loan Interest Rates:

Under its regular home loans to non-staff members, Bank of India is offering 7.45% to 9.20% home loan rates to salaried individuals.

For non-salaried individuals, the interest rates are also the same.

It needs to be noted that the rate of Interest is dependent upon the Loan limit and the CIBIL Score of the applicant/s. Also, there is risk premium of 0.05% levied for customers not obtaining credit insurance cover.

Bank of Baroda Processing Fees:

Now, the bank is offering a zero processing fee. Earlier, the bank levied a minimum of Rs 8,500 to a maximum of Rs 15,000 on home loan amount up to Rs 50 lakh, while the processing fees stood at Rs 8,500 to Rs 25,000 on loan amount above Rs 50 lakh.

Also, before, the bank imposed Rs 5,000 to Rs 12,500 on top-up home loans.

These processing fees will not be levied henceforth until further notice.

In June 2025, Bank of Baroda had reduced its home loan interest rates from 8.00% p.a. to 7.50% per annum, in line with response to the policy rate easing by the Reserve Bank of India.

Bank of Baroda Home Loans Documents:

Various documents pertaining to KYC, personal identification, property related documents, income proofs etc. are required for availing home loan.

As per the Bank of Baroda website, salaried individuals will have to submit the following documents:

- Latest 3 months Salary Slips & latest 1 month salary slip for Guarantors
- Form 16 & ITR - last 1 years of Applicants & Guarantors(if any )
- Copy of Employee identity Card provided by Employer
- Appointment /Confirmation / Promotion /Increment letter evidencing duration of employment
- 6 months Bank A/c statement (Salary / Individual) or Account No if account is with BoB.

RBI Repo Rate And Its Impact:

Last month, RBI surprised everyone with a whopping 50 basis points cut in the key repo rate to 5.50%. So far, in 2025, RBI has trimmed the repo rate by 100 basis points from the February 2025 policy to the June 2025 policy. The rate cut impacts fixed deposits and lending rates at banks.

After the steep rate cut, experts believed it will be a key boost to home buyers, lenders and real estate market.

On June 6, Kanika Singh Chief Risk Officer- IMGC (India Mortgage Guarantee Corporation) for the overall home loans portfolio, said, "With the repo rate reduction, Home Loan borrowers are definitely expected to benefit. We have already seen some return on investment (ROI) benefits from the previous two rate cuts being passed on to borrowers. With a 50 bps rate cut, the home loan EMIs will come down substantially, provided the transmission occurs in real-time and not with a lag. While global economic outlook continues to remain volatile due to trade policy uncertainty, India's growth projections remain positive, supported by strong domestic fundamentals aided by the government and, to some extent, private capex. The inflation outlook is also positive, supported by low core inflation and the expectation of a good harvest."