Bank of Maharashtra has joined several other lenders to cut interest rate by 25 basis points on retail loans, including home and car loans, in line with reduction in repo rate by the Reserve Bank of India.

Earlier, State Bank of India and Punjab National Bank, among others, had  lowered their repo rate.

After a gap of five years, RBI reduced the repo rate, the rate at which banks borrow from the central bank, by 25 basis points to 6.25% on 7 February.

Following this, the benchmark rate for home loan has been reduced to 8.10%, one of the lowest in the banking industry, the state-run lender said in a statement today.

Car loan came down to 8.45% per annum.

Similarly, education and other loans linked with Repo Linked Lending Rate (RLLR) has also been reduced by 25 basis points.

The bank has already waived processing fees on home and car loans, it said, adding, this dual benefit of reduced interest rates and waiver of processing fees reflects the bank's commitment to offer best financing solutions to all its customers and help them fulfil their dreams.

Meanwhile, the Pune-based lender has received RBI's approval to set up an International Financial Services Centre (IFSC) Banking Unit at GIFT City.

The branch will function as Bank of Maharashtra's first international branch carrying out offshore banking operations from India. This will help expand international banking business and also enable the bank to provide specialised banking services to its customers.