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 Mumbai:
Effective 1st March, 2004, Bank of Baroda has decided
to reduce the rate of interest on housing loans to individuals
under floating rate option, making them one of the lowest
in the entire industry.
For
floating rate loans, the reduced rate structure (with
monthly rests) would now be 7.50% p.a. for 5 year tenor;
8.00% p.a. for tenor above 5 years - upto 10 years;
and 8.25% p.a. for tenor over 10 years.
The
revised rate under floating rate option shall also be
applicable to the existing borrowers who have availed
housing loans under floating rate option.
Bank
of Baroda''s existing housing loan customers will have
the option to convert from fixed rate option to floating
rate option subject to payment on outstanding balance
@ 0.5% for every year of residual period of loan, subject
to a cap of 2% of the amount outstanding.
Bank
of Baroda''s housing portfolio jumped by Rs.652 crores
in the nine months period ended 31st December, 2003,
registering a growth
of 40% with over 22000 new accounts. The Bank looks
forward to accelerated growth in the housing loan segment
with its interest rate as one of the lowest in the industry.
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