Bank of Maharashtra (BoM) has cut its home loan interest rate by 10 basis points (bps) to 8.50 per cent and car loan interest rate by 20 basis points to 8.70 per cent with effect from August 14.

Currently, the Pune-headquartered public sector bank offers home loans and car loans at 8.60 per cent and 8.90 per cent, respectively.

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The bank has also waived processing fees on home and car loan schemes.

The dual benefit of reduced interest rates and waiver of processing fees on home and car loans will alleviate the financial burden for customers, BoM said in a statement.

In the current high-interest rate landscape, the bank has been proactive in lowering its home and car loan interest rates, it added.

 The bank has already waived processing fees for its other retail schemes, including education and gold loans under its UDAAN Campaign.