With the festive season in full swing, banks are rolling out special offers for customers looking to fulfill their dream of owning a home. If you’re planning to buy a house before Diwali, Bank of Baroda’s latest home loan offer could make it easier—and more affordable—than ever.
Bank of Baroda Cuts Interest Rates
Government-owned Bank of Baroda (BoB) has reduced its interest rates on vehicle and mortgage loans by 0.25%. For home loan customers, the bank is now offering loans starting at an attractive rate of 7.45% per annum. Please note: the exact rate you get will depend on your credit score; a higher credit score means you may qualify for the lowest rates.
EMI Calculation for Rs 50 Lakh Home Loan
Let’s say you take a home loan of Rs 50 lakh for 20 years at an interest rate of 7.45% (floating):
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Loan Amount: Rs 50,00,000
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Tenure: 20 years (240 months)
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Interest Rate: 7.45% per annum
Monthly EMI:
Approximately Rs 40,127
Total Interest Payable:
Rs 46,30,464 (over 20 years)
Total Payment (Principal + Interest):
Rs 96,30,464
What this means: Over the loan tenure, you end up paying almost double the principal amount due to interest.
Things to Keep in Mind When Taking a Home Loan
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Compare Interest Rates: Always check rates from multiple banks before choosing.
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Loan Tenure: Longer tenure reduces EMI, but increases total interest.
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Extra Charges: Check for processing fees, pre-payment charges, and hidden fees.
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Fixed or Floating Rate: Decide what suits your financial planning better.
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Pre-Payment Option: If possible, choose a loan where you can make pre-payments to reduce future interest.
Why Is Now a Good Time to Take a Home Loan?
With interest rates at a recent low and banks offering festive season deals, this is one of the best times to lock in a home loan. More banks may announce additional offers ahead of major festivals like Diwali, making it a golden opportunity for homebuyers to save lakhs in interest.
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