Bumper Cut In Home Loan Rates Ahead? Bank of Baroda Cuts Repo Rate-Linked Interest Rates By 25 Bps

Following the policy repo rate decision this week, Bank of Baroda has made the first move in reducing its term loan interest rates that are linked to external benchmark. The PSU bank has reduced its repo-linked interest rates by 25 basis points with effect from December 6, 2025. This will bring down EMIs significantly for home loans, personal loans and auto loans among others.

Bank of Baroda New Rates:

As per the regulatory filing, the bank said its Baroda Repo Based Lending Rate (BRLLR) is lowered by 25 basis points to 7.90% from 8.15%. This is in line with 25 basis points cut by RBI in repo rate to 5.25% from earlier 5.50%.

The mark-up rate is unchanged to 2.65%.

Bank of Baroda Home Loan Rates:

The latest update on its website shows that Bank of Baroda's Home Loan to Non-Staff members ranges from 7.20% to 8.95% for both salaried and non-salaried borrowers. It needs to be noted that the rates depend upon Loan limit and CIBIL Score of the applicants. There is risk premium of 0.50% is imposed for customers not obtaining credit insurance cover.

However, Baroda Home Loan to Non-Staff members fixed home loan rates range from 8.90% to 9.95% for salaried borrowers and 9% to 9.95% for non-salaried borrowers.

There are also various processing charges levied on these home loans. For instance, if a borrower takes home loan up to Rs 50 lakh, then the minimum processing fees is Rs 8,500 on the loan amount, which can go maximum to Rs 15,000. Further, if the loan amount is greater than Rs 50 lakh, the processing charges range from Rs 8,500 minimum to Rs 25,000 maximum.

Repo Rate:

On December 5, 2025, the monetary policy committee voted unanimously to reduce the policy repo rate under the liquidity adjustment facility (LAF) to 5.25%. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00% and the marginal standing facility (MSF) rate and the Bank Rate to 5.50%. The MPC also decided to continue with the neutral stance.

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