Be sure to confirm a few details with Bank of Baroda before using your savings to cut down loan interest. Inquire whether the interest is compounded daily, as this method typically maximizes your savings. Also, make sure there aren't any hidden fees or "minimum balance" rules for that specific account. You want to ensure that keeping your money there truly lowers your interest without hidden fees or penalties.

You can take a loan from both public sector banks as well as private sector banks, which provide the best interest rates on home loans.

Public sector banks like State Bank of India (SBI) and Bank of Baroda (BoB) are known for their competitive interest rates and stability. State Bank of India (8.50% to 9.65% per annum) and Bank of Baroda (8.50% to 9.20%) are the best options.

Private sector banks such as HDFC Bank and Axis Bank often provide attractive interest rates and expedited processing. HDFC Bank (8.55% to 9.50%) and Axis Bank (8.60% and 9.60%).

All these banks offer good, competitive interest rates and have some processing fees. To get the special interest rate offers, your CIBIL score should be 750 points or more.