Bank of India Slashes Home Loan Rates to 7.90%, Cuts Other Retail Loan Rates by 25 bps
Bank of India has announced significant interest rate reductions across various retail loan products, effective April 15, 2025. Home loan rates have been cut to 7.90% per annum, while other retail loans, including personal and vehicle loans, see a 25 basis points reduction. The bank has also revised its fixed deposit rates. These changes are expected to make borrowing more affordable for customers and potentially stimulate demand in various sectors, including real estate.

*this image is generated using AI for illustrative purposes only.
Bank of India (BOI) has announced a significant reduction in its interest rates across various retail loan products, effective April 15, 2025. This move is expected to make borrowing more affordable for customers seeking home loans, personal loans, and vehicle loans.
Home Loan Rate Cut
The bank has taken a bold step by reducing its home loan interest rates to a competitive 7.90% per annum. This reduction makes Bank of India's home loan offerings more attractive to potential homebuyers and existing customers looking to refinance their mortgages.
Across-the-Board Rate Cuts
In addition to the home loan rate reduction, Bank of India has implemented a 25 basis points (bps) cut on various retail loan products. This across-the-board reduction encompasses:
- Personal loans
- Vehicle loans
- Other retail loan products
The 25 bps cut is a significant move that could potentially stimulate borrowing and support consumer spending in various sectors.
Fixed Deposit Rate Revisions
Alongside the lending rate cuts, Bank of India has also announced revisions to its fixed deposit rates. The new rates will vary based on different maturities and deposit amounts. This adjustment in deposit rates is likely an effort to balance the bank's interest margins while offering competitive rates to depositors.
Impact on Customers
The reduction in loan rates is expected to benefit both new and existing customers of Bank of India:
- Home loan seekers can now avail loans at the attractive rate of 7.90% p.a.
- Personal and vehicle loan applicants will benefit from the 25 bps reduction in interest rates.
- Existing borrowers with floating rate loans may see a reduction in their EMIs or loan tenures.
Market Implications
This move by Bank of India could potentially:
- Increase competition in the retail lending space
- Stimulate demand in the real estate sector
- Encourage other banks to review their lending rates
As the new rates take effect from April 15, 2025, customers are advised to contact their nearest Bank of India branch for more details on the revised interest rates and how they can benefit from these changes.
The bank's decision to lower lending rates while adjusting deposit rates reflects its strategy to maintain a balance between attracting depositors and offering competitive loans in a dynamic financial market.
Historical Stock Returns for Bank of India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+1.40% | +8.27% | +23.52% | +11.86% | -15.02% | +243.40% |