Lower emis ahead? Bank of India lowers interest rates for home loans to 7.90 percent | Mint

Bank of India has announced to lower its home loan interest rates and provide relief to new as well as existing lenders. With this change, the home loan rate was reduced from 8.10 percent per year to 7.90 percent per year based on their creditworthiness. This move is aimed at making home ownership more accessible to support customers who meet their financial goals. The revised rates will come into effect from April 15, 2025, the press release states. In addition to home loans, Bank of India has also reduced interest rates in existing retail loan products, including vehicle loan, personal loan, property loan, education loan and star -in -laws. This was announced shortly after RBI lowered the repo rate by 25 basis points to 6 percent on April 9. The latest cut of the repo was the second in a row to the last rate cut in February. Why did the Bank or India lower its home loan interest rate? The state engineer did this in the wake of the repo rate by RBI. Which loans have lowered an interest rate? The bank has announced to cut the interest rate cut on categories such as vehicle loan, personal loan, loan against property and education loan, the bank’s press release states. Is it meant only for the new borrowers? The new rates apply to new as well as existing borrowers. But the rates apply from April 15, ie Tuesday. Which loans usually see a drop in interest rates after cutting the repo rate? The loans linked to the external measure (repo rate) see a drop. The loans that have fixed interest rates are not a reduction in interest rates. Is it compulsory for banks to pass on the total benefit of the rate cut to consumers? Although the banking regulator has reduced the repo rate by a total of 50 basis points in the past two MPC meetings, the banks are determined by the banks. They can decide to what extent this cut is passed on to consumers. First published: 14 Apr 2025, 01:19 IST