Mumbai, June 4: The Bank of Baroda (BoB) today announced a single rate of interest for all its home loan customers, both new and existing.

The state-owned bank today said customers could avail themselves of home loans at its base rate of 10.25 per cent. This rate will be applicable across all tenures of any amount.

The rate revision will come into effect from June 1 and will be applicable to both new and existing borrowers. BoB said there would be no conversion charges for its existing customers if they chose the reduced rates.

Most of the banks give home loans at a certain percentage point over their benchmark rates. The SBI charges interest 25 basis points over its base rate for loans up to Rs 30 lakh and 40 basis points above the benchmark rate for loans above Rs 30 lakh.

The base rate is the minimum rate at which banks can lend to corporate houses and individuals.

Despite the revision, the interest rate offered by BoB is not lower than that of the country’s largest bank. At present, the SBI charges an effective interest rate of 9.95 per cent for loans up to Rs 30 lakh and 10.10 per cent for those above Rs 30 lakh. The SBI’s base rate is 9.70 per cent.

Retail credit at BoB rose to a little over Rs 38,000 crore for the quarter ended March 31, an increase of around 7 per cent over the same quarter last year. Home loans grew 13.5 per cent to over Rs 16,000 crore.

After declaring the fourth quarter numbers recently, BoB said it would not seek to grow aggressively as the economy was still recovering. It’s plan is to grow 1.5-2 per cent over and above the industry average to protect its market share.