KEY HIGHLIGHTS
- Bank of Baroda cuts repo-linked lending rate by 25 bps from today.
- Home loan, auto loan and personal loan EMIs expected to reduce noticeably.
- Lower BRLLR now set at 7.90%, offering relief to new and existing borrowers.
If you’ve been waiting for some paisa vasool relief on your home loan EMI, this move might just make your month a little lighter. bank of baroda home loan rate cut
Bank of Baroda has officially slashed its repo rate–linked interest rates by 25 bps, becoming the first big PSU bank to act after RBI’s latest policy cut.
Summary Table: New Rate Snapshot vs Earlier Rates
| Category | Earlier Rate | New Rate | Impact |
|---|---|---|---|
| BRLLR (Repo-linked) | 8.15% | 7.90% | EMIs drop for home, auto, personal loans |
| RBI Repo Rate | 5.50% | 5.25% | Policy easing passed on to borrowers |
| Home Loan Range (Floating) | 7.45%–9.20% approx. | 7.20%–8.95% | Lower entry rates for new borrowers |
| Fixed Home Loan Range | 8.90%–9.95% | No change | Fixed borrowers unaffected |
| Processing Fees | ₹8,500–₹25,000 | Same | Depends on loan amount |
What Exactly Has Changed?
Bank of Baroda’s new Baroda Repo Based Lending Rate (BRLLR) is now 7.90%, down from 8.15%.
This reduction is directly linked to the RBI’s 25 bps rate cut announced on 5 December 2025.
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For lakhs of borrowers, this means one thing:
Lower EMIs. Finally.
The bank clarified that the mark-up of 2.65% remains unchanged.
Updated Home Loan Rates (BoB)
According to the official website, fresh home loan rates for non-staff borrowers now fall between:
- 7.20% to 8.95% — salaried & non-salaried
- Rate depends on loan amount + CIBIL score
There’s also a 0.50% risk premium for those who skip credit insurance cover.
For fixed-rate home loans:
- Salaried: 8.90% to 9.95%
- Non-salaried: 9% to 9.95%
These haven’t changed despite the repo cut.
Processing Fees Still Apply
If you’re planning to apply, keep the fees in mind:
- Loans up to ₹50 lakh → ₹8,500 to ₹15,000
- Loans above ₹50 lakh → ₹8,500 to ₹25,000
These charges vary depending on your loan slab.
Why RBI Cut the Repo Rate
The Monetary Policy Committee unanimously reduced the repo rate to 5.25% to support growth and ease borrowing pressures.
Other revised RBI rates:
- SDF: 5.00%
- MSF & Bank Rate: 5.50%
The stance remains neutral, signalling that RBI is open to future adjustments depending on inflation and growth.
What This Means for You
If you already have a floating home loan, your EMI should drop soon.
If you’re planning to apply for a fresh loan, this might be the best window before banks tweak spreads again.
Lower rates + competition among banks = better deals for borrowers.
Frequently Asked Questions
1. Will my EMI reduce automatically after this rate cut?
Yes, if your home loan is repo-linked or floating-rate, your EMI or tenure will adjust automatically in the next reset cycle.
2. Are fixed-rate home loan customers getting any benefit?
No, fixed-rate loans remain unchanged. Only repo-linked/floating loans get the rate cut benefit.
3. Is this the lowest home loan rate in India right now?
It’s among the competitive rates, but not the lowest. Private banks may still offer lower starting rates based on profiles.
