Bank of Maharashtra: Public sector bank, Bank of Maharashtra (BOM) on Saturday cut the interest rate on home and car loans by up to 20 basis points. The bank has also waived off the processing fee for its customers.
Bank of Maharashtra : Public sector bank, Bank of Maharashtra (BOM) on Saturday cut the interest rate on home and car loans by up to 20 basis points. The bank has also waived off the processing fee for its customers.
After the new deduction of the bank, new home loan rates are available from 8.60 percent to 8.50 percent. Whereas, the car loan has been made cheaper by 20 basis points to 8.70 percent. These new rates of BOM will be applicable from 14 August.
Bank of Maharashtra reduced interest on home loan
According to the bank, customers will get double benefit from low interest rates and processing fee waiver. This will help the customers to reduce their financial burden. Not only this, the bank has earlier given discounts on retail schemes such as education loan and gold loan under its Udaan campaign.
Recently Bank of Baroda has increased MCLR
Bank of Baroda has increased MCLR. Bank of Baroda has increased the overnight interest rate from 7.95 per cent to 8 per cent. Apart from this, MCLR of one month, three months and six months has also been increased. This has been increased to 8.25 per cent, 8.35 per cent and 8.45 per cent respectively. The bank’s benchmark MCLR for one year will now be 8.7 per cent.
All types of loans will become expensive
MCLR is the minimum interest rate on the basis of which any bank charges interest on auto, personal and home loans from its customers. These interest rates depend on time, deposit rates, repo rate, operating cost and cash reserve ratio. MCLR is decided on the basis of all these factors.
If there is any change in the repo rate, then the MCLR rate is automatically affected because this rate is linked to the repo rate. In case of any change in the repo rate, borrowers of only those banks will be affected whose loan interest rates are linked to MCLR.
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