Home Loan- Good news for common people. Bank of Maharashtra has made some amendments after reviewing the MCLR (Marginal Cost of Funds Based Lending Rate) rates, which will be effective from June 27, 2025. The bank has reduced its 1-year MCLR from 9.10 percent to 9.05 percent. 1-year MCLR is the key rate at which banks offer most retail loans like home loans, personal loans, etc.
According to the notification issued by the bank, MCLR for one year period has been reduced from 9.10 percent to 9.05 percent. Similarly, MCLR rate for three month period has been reduced from 8.70 percent to 8.65 percent. There is no change for the remaining tenure.
Although the MCLR for the overnight period has been kept unchanged at 8.20%, there has been no change in the rate of 8.40% for one month and 8.90% for six months. The purpose of this amendment is to give some relief to the customers in the interest rates on loans. Especially the consumers taking home loan, auto loan and other term loans can get the benefit of this reduction.
What is MCLR?
Let us tell you that MCLR is the minimum rate below which the bank is not allowed to give loan. That is, this is the minimum rate at which the bank can give loan. Reserve Bank of India implemented MCLR on 1 April 2016 to fix the interest rates for loans.