State-run Bank of India on Sunday announced a cut in its interest rates on home and vehicle loans by 35 basis points and 50 basis points, respectively.

The interest rate on home loans starts at 6.50 per cent against earlier 6.85 per cent, and at 6.85 per cent against 7.35 per cent prior on vehicle loans, the bank said in a release.

This special rate, which is effective from October 18, 2021, till December 31, 2021, is available for customers applying for fresh loans and also for those seeking transfer of loans, it said.

The lender said it has also waived processing charges for both home and vehicle loans till December 31, 2021.

State-owned Bank of Maharashtra last week said it has reduced lending rate by up 10 basis points, a move that will make housing, car, and other loans cheaper.