Bank of Maharashtra Cuts Home, Car Loan Rates, Waives Processing Fee

Starting August 14, 2023, the Bank of Maharashtra's adjusted home loan interest rate will be 8.50 per cent, down from the current rate of 8.60 per cent.

In a statement, BoM said that the move aims to provide financial relief to customers and foster their financial journey.  ( Image Source :Getty )

State-owned Bank of Maharashtra (BoM) on Saturday slashed the interest rates on home and car loans by up to 20 basis points (bps). The lender also announced a waiver on the processing fee. In a statement, BoM said that the move aims to provide financial relief to customers and foster their financial journey. 

Starting August 14, 2023, the Bank of Maharashtra's adjusted home loan interest rate will be 8.50 per cent, down from the current rate of 8.60 per cent, reported PTI, citing the bank release on Saturday. Furthermore, the interest rate for car loans has been reduced by 20 basis points and now stands at 8.70 per cent.

The bank said this combination of reduced interest rates and waived processing fees for home and car loans demonstrates the bank's dedication to easing the financial load on customers and bolstering their financial progress. 

Earlier, the bank had already waived processing fees for other retail schemes like education loans and gold loans as part of its UDAAN Campaign, the report noted. 

On Friday, in an exchange filing, the bank shared its revised Marginal Cost of Funds Based Lending Rate (MCLR), which will be effective from August 10, 2023. The Public sector bank increased its MCLR by 10 basis points. Bank of Maharashtra's one-year MCLR is now 8.60 per cent, as opposed to the previous 8.50 per cent. This revised rate became effective on August 10, 2023.

Additionally, the Bank of Baroda has also revised the one-year MCLR to 8.70 per cent, a marginal increase from the existing rate of 8.65 per cent. This new rate will come into effect from August 12.

Similarly, Canara Bank raised its MCLR by 5 basis points, setting the new rate at 8.70 per cent, effective from August 12. 

Meanwhile, on Thursday, the RBI Monetary Policy Committee (MPC) announced to keep the policy rate unchanged at 6.5 per cent. This was the third time in a row that the RBI opted for a pause in rate hikes.