The festive season always brings special offers for customers. If you want to fulfill your dream of buying your house before Diwali, then Bank of Baroda’s offer can be very beneficial for you. The bank has given a big relief to the customers by reducing the interest rates at the beginning of this season.
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BoB reduced interest rates
Government bank, Bank of Baroda, has reduced the interest rate on vehicle and mortgage loans by 0.25%. Especially for home loan customers, the bank is now providing loans at an initial interest rate of 7.45%. However, this rate will depend on your credit score. If your credit score is better, then you will get a loan at the minimum interest rate.
EMI calculation on a loan of 50 lakhs
Suppose a customer takes a home loan of Rs 50 lakh for a period of 20 years, then he will have to pay a monthly EMI of about Rs 40,127 at an interest rate of 7.45%. During this period, the total interest amount will be Rs 46,30,464, and the customer will have to pay a total of Rs 96,30,464 in the entire period. That is, due to interest, almost double the amount of the principal will have to be returned.
Pay attention to these things while taking a home loan
Before taking a loan, it is very important to compare the interest rates of different banks. Choosing a longer period will reduce the EMI, but the interest amount will increase significantly. Also, definitely get information about processing fees, pre-payment charges, and other hidden fees. While taking a loan, also decide whether you want to choose a fixed rate or a floating rate. Apart from this, if the facility of pre-payment is available, it will help in reducing the burden of interest in the future.
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Why is this the right time
You can save lakhs of rupees by taking advantage of festive offers. Since interest rates are low right now, this is a great time to take out a home loan. Many banks can bring new offers till big festivals like Diwali, so this is the right opportunity for those planning to buy a house.