Mortgage Loan Interest Rates in Bank of India

Introduction

In a significant move, the Bank of India (BOI) has announced a reduction in interest rates on its mortgage loan products. Effective immediately, the new rates will provide borrowers with more affordable options for financing their home purchases.

Key Highlights

• The BOI has reduced interest rates on its home loans by up to 10 basis points (bps).
• The new rates are applicable to both new and existing borrowers.
• The reduction in interest rates is expected to stimulate demand for home loans and boost the real estate sector.

Details of the Rate Reduction

The BOI has reduced interest rates across its entire range of home loan products. The new rates are as follows:

• Home loans for up to Rs. 30 lakhs: New rate of 6.50% (reduced by 10 bps)
• Home loans for Rs. 30 lakhs to Rs. 75 lakhs: New rate of 6.75% (reduced by 5 bps)
• Home loans for Rs. 75 lakhs to Rs. 1 crore: New rate of 6.95% (reduced by 5 bps)
• Home loans for above Rs. 1 crore: New rate of 7.15% (reduced by 5 bps)

The BOI has also introduced a special interest rate of 6.35% for women borrowers.

Impact on Borrowers

The reduction in interest rates will significantly reduce the monthly EMI (Equated Monthly Installment) for home loan borrowers. For example, a borrower with a home loan of Rs. 50 lakhs at the previous interest rate of 7.00% would have to pay an EMI of Rs. 34,582. Under the new interest rate of 6.75%, the EMI would reduce to Rs. 32,874, saving the borrower Rs. 1,708 per month.

Conclusion

The BOI's reduction in mortgage loan interest rates is a welcome move that will benefit homebuyers and boost the real estate sector. The new rates provide borrowers with more affordable options for financing their home purchases and are expected to stimulate demand for home loans.