- Retail Loan Interest Cut: BoM reduces home and car loan rates by 25 basis points.
- Lower Borrowing Costs: Home loan rates now at 8.10% and car loans at 8.45%.
- Processing Fees Waived: No processing fees on home and car loans.
- Expansion in Global Banking: RBI approves BoM's international banking unit at GIFT City.
- Commitment to Customers: BoM aims to offer competitive financing solutions for borrowers.
Borrowers have a reason to celebrate as the state-owned Bank of Maharashtra (BoM) has reduced interest rates on retail loans, making home and car loans more affordable. The bank has cut interest rates by 25 basis points (bps) following the Reserve Bank of India’s (RBI) decision to lower the repo rate to 6.25% on February 7, marking the first rate cut in five years.
As a result, BoM has revised its home loan interest rate to 8.10%—one of the lowest in the banking industry—while car loans are now available at an 8.45% interest rate per annum. Other loans linked to the Repo Linked Lending Rate (RLLR), including education loans, have also seen a reduction of 25 bps.
Adding to the relief for borrowers, the bank has waived processing fees on home and car loans. This means customers can avail of loans at reduced interest rates without worrying about additional upfront charges. “This dual benefit of reduced interest rates and waiver of processing fees reflects the bank’s commitment to providing the best financing solutions and helping customers achieve their financial goals,” BoM stated in a press release.
BoM Expands Global Presence with IFSC Banking Unit at GIFT City
In another significant development, BoM has received approval from the RBI to set up an International Financial Services Centre (IFSC) Banking Unit at GIFT City, Gujarat. This will mark the bank’s first offshore banking branch, strengthening its international banking operations from India.
The new branch will enable BoM to expand its global footprint and provide specialised banking services, catering to the needs of businesses and individuals engaged in international trade and finance. With this move, BoM joins other leading banks in leveraging GIFT City’s status as India’s first international financial hub.
What This Means for Borrowers
With reduced home and car loan interest rates and waived processing fees, prospective borrowers now have an opportunity to avail of cost-effective financing. These steps not only make home and vehicle ownership more affordable but also align with BoM’s strategy of making banking services more customer-centric.
Additionally, the bank’s expansion into offshore banking through its IFSC unit signifies a step towards enhancing international trade and financial services. As the banking sector adapts to changing economic conditions, such strategic moves by BoM reinforce its commitment to innovation and customer satisfaction.
For those looking to secure a home or car loan, now might be the best time to take advantage of these reduced rates and savings on processing fees.
