Bank of Maharashtra Cuts Retail Loan Rates by 25 bps

New Delhi, Apr 14 (PTI) State-owned Bank of Maharashtra (BoM) has announced reduction in lending rate linked to repo rate by 25 basis points in line with the Reserve Bank's key policy rate.

The bank's repo-linked lending rate (RLLR) has now been reduced from 9.05 per cent to 8.80 per cent, BoM said in a statement on Monday.

The Reserve Bank of India (RBI) on Wednesday slashed key interest rates by 25 basis points for the second time in a row to support growth facing the threat of reciprocal tariffs by the US.

The reduced rates will make loans more affordable and enhance the financial well-being of its customers, it said.

Since all retail loans offered by the bank are linked to the RLLR, this reduction would benefit customers availing home, car, education, gold and all other retail loan products, it said.

The home loan offered by the bank would start from 7.85 per cent per annum while car loans will be priced from 8.20 per cent per annum, which are among the lowest in the banking industry, it claimed.

Meanwhile, another public sector lender Indian Overseas Bank (IOB), too, cut its benchmark lending rate in line with repo rate reduction from 6.25 per cent to 6 per cent.

The bank has decided to pass on the rate cut to the customers by reducing the RLLR of the bank by 25 basis points from 9.10 per cent to 8.85 per cent, IOB said in a statement.