Bank of Maharashtra slashes interest rate on retail loan by 25 bps

New Delhi: State-owned Bank of Maharashtra (BoM) has cut interest rate by 25 basis points on retail loans, including home and car loans in line with reduction in repo rate by RBI.

After a gap of 5 years, RBI reduced the repo rate, the rate at which banks borrow from the central bank, by 25 basis points to 6.25 per cent on February 7.

Following this, the benchmark rate for home loan has been reduced to 8.10 per cent, one of the lowest in the banking industry, BoM said in a statement on Sunday.

At the same time, it said, car loan came down to 8.45 per cent per annum.

Similarly, education and other loans linked with Repo Linked Lending Rate (RLLR) has also been reduced by 25 basis points.

The bank has already waived processing fees on home and car loans, it said, adding, this dual benefit of reduced interest rates and waiver of processing fees reflects the bank's commitment to offer best financing solutions to all its customers and help them fulfil their dreams.

Meanwhile, the Pune-based lender has received Reserve Bank of India's approval to set up an International Financial Services Centre (IFSC) Banking Unit at GIFT City.

The branch will function as BoM's first international branch carrying out offshore banking operations from India. This will help expand international banking business and also enable the bank to provide specialised banking services to its customers.