NEW DELHI: The Bank of Maharashtra, a state-owned institution, announced on Thursday that it has cut its interest rates by up to 50 basis points on retail loans including home, car, education, and other loans linked to the Repo Linked Lending Rate.
This reduction aligns with the RBI’s recent rate moderation and is effective from June 10.
With this cut, the starting interest rate for home loans is now 7.35 percent, while car loans begin at 7.7 percent, marking some of the lowest rates in the banking sector, according to a statement from BoM.
The bank emphasized that this rate reduction is part of its commitment to provide the best financing solutions to customers and assist them in achieving their aspirations.
In light of the current interest rate environment, the bank aims to make retail loans more affordable, spreading positivity among its clients.
Meanwhile, Bank of Baroda (BoB) has also reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across various tenors from one month to one year.
In response to the RBI’s recent actions, several banks have lowered their lending rates, with others expected to follow suit shortly.
On Friday, the RBI unexpectedly reduced the benchmark interest rate by 50 basis points and cut the cash reserve ratio for banks, allowing them to lend more to stimulate the economy.
The RBI’s six-member monetary policy committee, led by Governor Sanjay Malhotra, voted five to one in favor of reducing the benchmark repo rate to 5.5 percent.
The cash reserve ratio was also cut by 100 basis points to 3 percent, which is expected to infuse around Rs 2.5 lakh crore into the already liquid banking system.
