Pune : In a move aimed at facilitating affordable housing and boosting the real estate sector, Bank of Maharashtra (BoM) has announced a reduction in its home loan interest rates by 15 basis points (bps) effective this Wednesday.
As part of this initiative, BoM will now offer home loans at an attractive rate of 8.35%, down from the previous 8.5%. In addition to the rate cut, the bank has also decided to waive off the processing fee associated with home loans, as confirmed in an official statement.
The decision comes at a time when the housing market is showing signs of revival, and the central bank’s policy rates have been relatively stable. BoM’s move is anticipated to make homeownership more accessible to a broader segment of the population and stimulate demand in the real estate sector.
BoM’s marginal cost of funds based lending rates (MCLR) for one year currently stands at 8.7%, providing a competitive edge to its home loan offerings. The bank’s commitment to promoting affordable housing is further reflected in its growing home loan portfolio, which reached Rs 26,686 crore as of the September quarter, marking a substantial 16.6% increase compared to the same period the previous year.
As the country looks towards economic recovery, BoM’s strategic decision to reduce home loan rates is expected to have a positive impact on both prospective homebuyers and the overall real estate market.
