On Sunday, the government-owned Bank of Maharashtra (BoM) announced a drop in the interest rate for home loans from 8.6 percent to 8.4 percent.
As of March 13, 2023, the new rate will be in force, according to a statement from BoM.
With an interest rate of 8.4 percent, a home loan is among the lowest in the banking industry.
Additionally, it claimed that the bank offers home loans at a special rate of interest (ROI) for members of the armed forces, including paramilitary formations.
As the borrower base expands, the bank also aims to capitalize on greater cross-selling opportunities.
The MD stated that there has been a higher trend in CASA (current and savings accounts) for the current month, which has led to a small increase in interest rate margin that we are passing along to customers.
BoM stated that it had previously abolished processing fees for home loans, as well as gold loans and car loans.
To entice new customers and accelerate loan growth before the fiscal year’s end, the Bank of Maharashtra lowered house loan rates by 20 basis points to 8.40 percent, making them among the lowest in the sector.
Hence, the state-owned lender with headquarters in Pune becomes the second bank to lower house loan interest rates in as many days. The Bank of Baroda reduced the rate by 40 basis points to 8.50 percent last Friday.
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