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Bank of Baroda Cuts Car and Housing Loan Rates by 0.25% Amid Festive Season
Banking: Bank of Baroda has reduced the interest rates on select products of car and mortgage loans (housing loans) by more than 0.25 percent with immediate effect. The bank has reduced the interest rates at a time when efforts are being made to promote loan growth in the country amid the tariff issue. What does this decision of the bank mean, let us know in detail.
Bank of Baroda has cut the interest rates on some of the car and housing loan (mortgage loan) products by over 0.25 percent with immediate effect. The state-run bank made the announcement on Thursday.
The bank has cut the interest rates during a period when attempts are being made to boost loan growth in the nation, amidst the issue of tariffs. It is expected by experts that this will assist in the economic growth of the nation. Considering inflation, the Reserve Bank of India (RBI) has maintained interest rates unchanged, and the money market too has witnessed an upward movement in yields. Bank of Baroda issued a statement that the action has been taken into consideration with the onset of the festive season.
In the housing loan market, some major banks are complaining about loans being given by competitors at "irrational" rates, due to which they have to slow down the pace of expansion of their book. Bank of Baroda Executive Director Sanjay Mudaliar said that with the cut in interest rates, their mortgage offering has now become more competitive.
