Good news for the common people of India. After the Reserve Bank of India lowered the repo rates, government banks across the country have started to follow suit by reducing their interest rates. Recently, the Bank of Maharashtra announced that it will be cutting the interest rates on its loans.
This reduction is set to provide significant relief to the bank’s customers. The RBI’s decision to cut the repo rates was the first in five years, and experts suggest that further cuts may be on the horizon. Now, let’s dive into the specifics of the interest rate cuts by the Bank of Maharashtra.
Home loans get a boost
The state-owned Bank of Maharashtra (BOM) has reduced interest rates on its retail loans, including home and car loans, by 0.25%. This move comes in response to the RBI’s recent repo rate cut. On February 7, the RBI lowered the repo rate by 0.25% to 6.25%, which is the rate at which banks borrow from the central bank. BOM announced that its benchmark rate for home loans has now dropped to 8.10%, making it one of the most competitive rates in the banking sector.
No processing fees
Additionally, the interest rate for car loans has been reduced to 8.45%. The bank has also lowered rates for education loans and its repo linked lending rate (RLLR) by the same quarter percent. BOM has waived the processing fees for both home and car loans, which means customers are enjoying a double benefit with these low rates. Experts believe that more advantages for the general public are likely to come soon.
The Pune-based bank has gotten the green light from the Reserve Bank of India to establish an International Financial Services Centre (IFSC) banking unit at GIFT City. This will be BOM’s first international branch, allowing it to handle offshore banking operations right from India. It’s a big step for expanding their international banking services and will let them provide specialized banking options to their customers.