Pune-headquartered Bank of Maharashtra has reduced its repo linked lending rate (RLLR) by 10 basis points from 6.90% to 6.80% with effect from October 11. 

Customers availing home loan, car loan, education loan and personal loan, along with MSME loan products, can enjoy this reduced interest rate.  

Moreover, MCLR has been reduced up to 10 basis points (bps). MCLR for overnight reduced to 6.70%, one month to 6.80%, three months to 7.10% and six months tenure to 7.15%.  The one year MCLR has been reduced by 5 bps to 7.25%.  

Earlier, ahead of the festive season, the bank had announced processing fee waiver on home loan, car loan and gold loan. 

Now with this downward revision in RLLR, home loan has reduced to 6.80%. The car loan is now priced at 7.05% while gold loans are available at 7%. 

“With this round of reductions, all these retail loans have become extremely affordable,” the bank said in a statement.

Home loans of the bank is given for a maximum term of 30 years. For a loan of Rs 10 lakh, the equated monthly installment (EMI) for a 30-year old loan will be Rs 6,586. If it is for a period of 15 years, the EMI will be Rs 8,932. The EMI for a lakh on the home loans will be Rs 652, which is one of the lowest in the industry.

“By reduction in RLLR our customers will be immensely benefited with zero processing charges in home loan, car loan and gold loan segments. This is going to add fillip to our customer satisfaction and bring cheers during the festive season,” said Bank of Maharashtra managing director and chief executive AS Rajeev.

After many banks announced festive offers to push up sales, waiving off processing fees and making loans affordable, personal loans registered an accelerated growth of 12.1% in August 2021 as compared to 8.5% a year ago. This was primarily led by faster credit growth in housing, vehicle loans and loans against gold jewellery.

Retail loans have reported a 12.1% growth over the previous year at the end of August 28, 2021, according to the latest RBI data released on September 30. The same time last year it was growing at the rate of 8.5%. Home loans grew higher at 9.2% year-on-year.