Bank of India has announced a big relief for customers. The bank has cut interest rates on home loans, education loans and deposit schemes. Also, the fee for not having minimum balance in the savings account has also been removed. Till now banks like PNB, SBI and Bank of Baroda are providing this service to customers. Bank of India has also joined the list of banks doing so. This change has come into force from 7 July 2025.
Home loan now cheaper
The bank has cut the interest rates of home loan by 50 basis points i.e. 0.50%. Now the minimum interest rate will start from 7.35% per year, which will depend on the CIBIL score of the customers. This rate will apply to both new and existing loans.
Relief on education loan
Now the education loan for studies in the country’s quality higher education institute will be available only at an interest rate of 7.5% per year. This will enable students to get cheaper finance for higher education.
Car and other retail debt also cheap
The bank has reduced the interest rate on several retail loan products including car loans and vehicle loans by 50 basis points. This will now make it cheaper and easier for common customers to take loans.
Rule of minimum balance on savings accounts ended
The bank has completely terminated the fine imposed for not keeping the minimum balance in all savings accounts. This means that now there will be no additional fee even if there is no minimum amount in your account.
Reduction in interest rate on green deposit
The interest rate on the Green Deposit Scheme i.e. 999-day special scheme has been reduced from 7% to 6.7% per year. This change will be applicable to an amount ranging from Rs 1 lakh to Rs 10 crore. The bank has reduced the interest rate from 2.75% to 2.5% per year on savings deposit up to Rs 1 lakh. However, there has been no change in interest rates at an amount of more than Rs 1 lakh.
Why were these changes made?
Bank of India said that this change has been in line with the recent softening of RBI in interest rates. Through this, the bank wants to promote credit growth and provide better service to customers. These decisions of Bank of India will provide direct relief to common customers. This is especially good news for those who are planning to take a home loan or education loan. Also, small account holders will also benefit from removing minimum balance penalty.
