Bank of Baroda has set its rate of interest for home loans up to Rs 5 lacs at 8.5 percent with effect from Dec 16, 2008. The new home loan rate will remain in force till June 30, 2009. A loan amount between Rs 5 lacs and 20 lacs carries an interest rate of 9.25 percent. These rates of interest are for a period of initial 5 years of loan disbursebent and the customers have a choice to go for a fixed rate or a floating one after that period.
Under fixed rate option, a borrower has to pay 9.50 percent up to 5 years for loan amount up to Rs 30 lacs. Above the limit of Rs 30 lacs, the rate of interest becomes 10.25 percent. On the other hand, Bank of Baroda interest rate under floating rate scheme is 8.50 percent for a loan of 30 lacs taken for a period of 5 years. | 
