Bank of Maharashtra (BoM) has decided to reduce the minimum interest rate at which it will offer home loans to 8 per cent from 8.30 per cent. The Pune-headquartered public sector bank also slashed personal loans by 245 basis points from 11.35 per cent to 8.9 per cent.

The revised interest rate on home loans and personal loans will be effective from October 17, 2022. The Bank said it has introduced a special 8 per cent rate of interest for defence personnel including paramilitary forces, benefiting both salaried and pensioner categories, for home loans.

BoM has already waived the processing fee for its gold, home and car loans under the ‘Diwali Dhamaka’ offer. “At a time when loan interest rates are rising across the spectrum in line with the rising policy rates, the Bank is making retail loans cheaper to bring in cheer among customers during the festive season,” BoM said in a statement.

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SBI’s offer

Last week, the State Bank of India (SBI) decided to offer a concession of up to 0.25 per cent on home loans, 0.15 per cent on top-up loans, and 0.30 per cent on loans against property for a limited period.

This offer is part of the Bank’s festive bonanza and is to mark the milestone of surpassing ₹6-lakh crore in assets under management in the home loan segment.

The interest rate for buyers of new home loans as well as takeovers starts at 8.40 per cent and top-up loans for furnishings/renovation/ home makeovers start at 8.80 per cent, India’s largest bank said in a statement. SBI has also waived the processing fees on home loans up to January 31, 2023.

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