Bank of Maharashtra reduced interest rate (indicative picture)
Bank of Maharashtra announced to reduce interest rates on Monday. According to the bank, interest rates have been cut by 10 basis points in view of the festive season. Housing, car and other loans will become cheaper due to reduction in interest rates. In recent months, many banks have decided to reduce interest rates, including government, private banks as well as finance companies.
Bank of Maharashtra said in a statement that the Repo Linked Lending Rate (RLLR) has been reduced from 6.90 percent to 6.80 percent. The reduction in interest rates has been implemented with immediate effect i.e. from October 11, 2021. Customers who take home, car, education, personal loan and MSME loan will get the benefit of reduction in interest rate.
how much interest rate
According to the statement of Bank of Maharashtra, the overnight MCLR has been reduced to 6.70 percent, for 1-month 6.80 percent, for 3-month MCLR 7.10 percent and for 6-month tenor at 7.15 percent. The one-year MCLR has been reduced by 5 basis points to 7.25%. In view of the festive season, Bank of Maharashtra has decided to waive processing fees on home, car and gold loans a few days back.
The bank has said that after the reduction of RLLR, customers will get the benefit of zero processing fee on the segment of home loan, car loan and gold loan. These steps have been taken to give cheap loans to customers in the festive season. After reducing the RLLR, the interest rate on home loan has been fixed at 6.8 percent, on car loan at 7.05 percent and on gold loan at 7 percent.
And banks have also given relief
In view of the festive season, many banks have announced reduction in interest rates. SBI is offering Credit Score Linked Home Loan at only 6.70 per cent. Under this, the better the credit score of the customer, the cheaper the home loan will be for him. Further, the interest rate applicable to the non-salaried borrower was 15 bps higher than the interest rate applicable to the salaried borrower. SBI has removed this distinction between salaried and non-salary borrowers. Similarly, Bank of Baroda has announced retail loan offers ahead of the festive season. This offer will be applicable for Home Loan and Car Loan products. BoB has given a discount of 0.25 percent on the current interest rates of home and car loans.
Similarly, HDFC Ltd has also announced a 0.10 percent cut in its retail interest rate. HDFC Bank has said that the retail main loan interest rate on housing loans has been cut by 0.10 percent. The new rates have come into effect from 10 November 2020. All existing customers will get the benefit of this change in interest rate. Many more banks have decided to reduce interest rates in view of the festive season.
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