Bank of Maharashtra Cuts Home and Car Loan Rates
In a move to attract customers, Bank of Maharashtra has announced a reduction in its home and car loan rates, effective from August 14. This decision comes after the Reserve Bank of India (RBI) kept the repo rate unchanged for the third time in a row at 6.5%. The new rates will see customers paying an interest of 8.5% for home loans, down from 8.6%, while car loan rates have been reduced to 8.7% from 8.9%.
Key Takeaways:
- The bank has reduced home loan rates to 8.5% from 8.6%, effective August 14, with car loan rates reduced to 8.7% from 8.9%.
- The interest rate charged on home loans is floating and linked to the repo rate fixed by RBI, currently at 9.3%.
- Borrowers with high Cibil scores (800 and above) can get home loans at a discount of 0.1% to RLLR (8.6%).
- The bank waives processing fees on some retail loans such as education and gold, with MCLR rates increased to 8.6% from 8.5%.
- Retail loans stood at Rs36,117 crore as of June 30, with home loans making up more than half of this total.
- Retail loans form 26% of the bank's total loan book, while corporate lending is at 42%.
Statistics:
- 8.5%: new home loan interest rate effective August 14
- 8.7%: new car loan interest rate effective August 14
- 8.6%: home loan interest rate for borrowers with Cibil score of 800 and above
- 9.3%: repo rate linked to home loans
- Rs36,117 crore: retail loans as of June 30
- 51%: proportion of home loans in retail loans
- 26%: proportion of retail loans in total loan book
- 42%: proportion of corporate lending in total loan book
Sources:
- Bank of Maharashtra's website
- Times of India article, August 2023 (exact source not provided in the original text)