RBI Issues Circular On Levying Unfair Interest Charges On Customers

Bank of India has reduced home loan interest rates to as low as 8.3 per cent. Home loan EMIs of 30 year tenure with the state owned bank would now start from Rs 755 per lakh per month. Moreover, borrowers will not have to pay any processing fees either. This offer is only available till March 31, 2024.

After reduction of home loan interest to as low as 8.3 per cent, the Mumbai-based public lender has claimed that this is the industry lowest. Currently, HDFC Bank and SBI home loan interest rates begin from 8.4 per cent.

Plus, Bank of India will also give loan for purchase of rooftop solar panels at the rate of just seven per cent. Processing fees will not be levied here, either. The bank will finance up to 95 per cent of the project cost. The borrower can repay the loan within maximum period of four years.

The government of India gives up to Rs 78,000 subsidy for installation of solar power connection.

The Mumbai based lender also gives the option of combining home loan with that on rooftop solar panels where it would sanction the latter at the same interest rate at which is has sanctioned the home loan.

Home loan rates in the country are currently at highest levels since Covid-19 pandemic. With anticipation of repo rate cut by the Reserve Bank of India (RBI) later this year, banks may also reduce interest rates going forward. Currently, the repo rate stands at 6.50 per cent. Subsequently, home loan rates may also reduce in the latter part of the current calendar year. But, nevertheless, rates are expected to remain elevated in the near term.