After BoB, Bank of Maharashtra cuts home loan rate effective March 13

20 bps reduction takes rate to 8.4% as the lender scales up efforts to cater to growing volumes ahead of the close of the financial year

After Bank of Baroda, now Bank of Maharashtra (Mahabank) has reduced home loan rate by 20 basis points to 8.4 per cent per annum as the lender scales up efforts to cater to growing volumes ahead of the close of the financial year.

The new rates are linked to borrowers' credit profiles and will be effective from March 13.

The reduced home loan rate will be available to those with a credit score of 800 and above. At present, home loans for the salaried cost 8.6-10.30 per cent, depending on credit profile, according to the Mahabank website.

On March 5, Bank of Baroda had reduced the rate for home loans for those with a credit score of 751 and above. At present, home loans for the salaried class cost 8.9-10.50 per cent.

Mahabank has already waived the processing fee for its gold, home and car loans under a festive offer, the Pune-based public sector lender said in statement. However, it did not specify the time period for which the rates would remain in force. Banks are likely to review rates after RBI brings out its monetary policy for 2023-24 in early April.

Mahabank posted 21.62 per cent year-on-year growth in its housing book to Rs 23,871 crore, as of December 2022.

Housing loans in the banking system rose 15.4 per cent YoY to Rs 18.88 trillion in January 2023, shows RBI data.