Bank of Maharashtra Cuts Lending Rates Amid RBI Policy Changes

State-owned Bank of Maharashtra has reduced its repo-linked lending rate by 25 basis points in response to the Reserve Bank of India's cut in key interest rates. This reduction aims to make loans more affordable and support customer financial well-being across various retail loan products.

State-owned Bank of Maharashtra (BoM) has announced a 25 basis point reduction in its lending rate, aligning with the Reserve Bank of India's recent policy rate adjustments. The bank's repo-linked lending rate now stands at 8.80 per cent from the previous 9.05 per cent, as per the bank's Monday statement.

This move follows the Reserve Bank of India's decision to slash key interest rates by 25 basis points for the second time consecutively, in a bid to spur growth amidst potential reciprocal tariffs by the US. The reduced rates are designed to make loans more affordable, boosting the financial health of BoM's customers.

The reduction in rates will impact all retail loans offered by the bank, including home, car, education, and gold loans. As a result, home loan rates will commence at 7.85 per cent per annum, while car loans will be available from 8.20 per cent per annum, positioning them among the most competitive in the sector. Similarly, Indian Overseas Bank has also lowered its benchmark lending rate, reflecting a broader industry trend.

(With inputs from agencies.)