Bank of Maharashtra slashes home loan rate to 8% as part of festive offer

State-owned Bank of Maharashtra (BoM) on Sunday announced a cut in interest rate on home loans to 8 per cent as part of its festive offer.

The bank currently offers home loans starting at 8.3 per cent. The rate varies depending on the borrower's credit score.

The Pune-based lender has also slashed interest rate on personal loans to 8.9 per cent from the existing 11.35 per cent effective Monday (October 17, 2022), BoM said in a statement.

The lender has already waived processing fee for its gold, home and car loans under the 'Diwali Dhamaka' offer.

By introducing this offer, the bank is offering one of the lowest interest rates in retail loans, especially home and personal loans, in the banking industry.

Market leader State Bank of India (SBI) and mortgage lender HDFC Ltd are offering discounted interest rates on home loans beginning at 8.40 per cent.

At a time when interest rates are rising across the spectrum in line with the rising policy rates, BoM is making retail loans cheaper to bring cheer among customers during the festive season, the statement added.