State-run  Bank of India on Sunday announced a cut in its interest rates on home and vehicle loans by 35 basis points and 50 basis points, respectively.

With this cut, the interest rate on home loans starts at 6.50 percent against earlier 6.85 percent, and at 6.85 percent against 7.35 percent prior on vehicle loans, the bank said in a release.

Bank of India (BOI) now offers a minimum interest rate on home loans at 6.50% as compared to 6.85% earlier and 6.85% on vehicle loans as compared to 7.35% earlier.

The lender said the new rates are applicable on fresh loans effective October 18, 2021, and will continue till December 31, 2021, as part of the festive offer. Those seeking transfer of loans can also avail themselves of the reduced rates. Additionally, the one-time processing charge will also be waived off on both home and vehicle loans till December 31, 2021.

Many banks such as SBI, ICICI Bank, Bank of Baroda, Punjab National Bank, Yes Bank, and Kotak Mahindra have to introduce discounted home loan rates to cash in on the oncoming festive season.

SBI, which is India’s largest public sector bank offers credit-linked loans starting at just 6.70% irrespective of the loan amount.

PNB has also slashed its rates by 50 basis points for loans up to Rs 50 lakh, offering a minimum interest rate of 6.60%.

Bank of Baroda as part of its special offer slashed 25 basis points on its home and vehicle loans starting at 6.75%.

Yes, Bank also lowered the minimum home loan interest to 6.7% per annum as part of the festive offer. It has also introduced a special 90-day offer under which it will give additional 5 basis points discount to salaried women home buyers. The effective rates stand at 6.65% at Yes Bank.   

Private lender Kotak Mahindra offers interest on loans as low as 6.5% as part of the ongoing offer from September 10 to November 8.

For ICICI Bank customers, loans start at 6.7% with the processing fee of Rs 1100 for new home loans and balance transfer of home loans from other banks.