Bank of Maharashtra lowers interest rates on home loans, personal loans

17 Oct 2022 , 08:12 AM

State-owned Bank of Maharashtra has reduced its home loan interest rates by 30 to 70 basis points as of Monday, going against the growing interest rate trend. The bank decreased the cost of personal loans by 245 basis points.

The bank claimed that by lowering the cost of retail loans, it hopes to boost client morale during the holiday season.

Bank home loans are now available at a minimum annual rate of 8%, while personal loan rates have decreased from 11.35% to 8.9%.

Prior to now, consumers with credit scores higher than 800 could get a home loan at the lowest possible rate of 8.30%. Borrowers with credit scores of 700 or above paid 8.7%.

According to a bank spokesman, the Pune-based lender has now opted to provide 8% rates to clients with minimum 700 credit scores.

As part of the “Diwali Dhamaka” promotion, the bank has already removed the processing charge for loans for gold, homes, and cars.

In comparison to many in the banking sector, BoM’s net interest margin (NIM) for the June quarter was better at 3.28%, enabling the lender to use aggressive loan pricing. For the months of April and June, State Bank of India’s domestic business NIM was 3.15% and its worldwide NIM was 2.92%.

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