PUNE: In a bid to offer more favorable borrowing terms to its customers, Bank of Maharashtra has announced a reduction in home and car loan interest rates, effective from Monday, August 14. With these updated rates, customers availing home loans will now benefit from an interest rate of 8.5%, down from the previous rate of 8.6%. Similarly, car loan rates have been trimmed to 8.7% from the previous 8.9%.
The bank follows a floating interest rate structure for its home loans, which are linked to the repo rate set by the Reserve Bank of India (RBI). This type of loan structure is referred to as repo-linked loan rates (RLLR). As per the bank’s website, the current RLLR stands at 9.3%.
This decision to lower interest rates aligns with the recent trend of the central bank maintaining the repo rate at a consistent 6.5% for three consecutive periods. This move is aimed at providing borrowers with more affordable borrowing options and encouraging investment in the housing and automobile sectors.
For those borrowers with a high Cibil score of 800 and above, the interest rate on home loans remains at 8.6%. This rate is positioned as a discount to the prevailing RLLR, making it an attractive proposition for eligible borrowers.
By implementing these interest rate reductions, Bank of Maharashtra seeks to make borrowing more accessible and cost-effective, thereby supporting individuals in realizing their dreams of owning homes and vehicles.
