Bank of Maharashtra cuts home loan rates to 8 per cent

Public sector lender Bank of Maharashtra (BoM) has reduced its home loan rates effective 16 September 16 as part of a festival offer.

For housing loans up to Rs30 lakh, interest will be charged at the rate of 8.0 per cent for the first two years, 8.5 per cent for the third year, 9.5 per cent for the fourth year and 9.75 per cent for the fifth, the bank said in a press release.
 
Loans sanctioned between 16 September and 31 December 2009 will be eligible for the discounted rates, the release said.

For loans exceeding Rs30 lakh, interest will be charged at 8.5 per cent for the first two years, 9.0 per cent for the third year and 9.75 per cent for the fourth and fifth year, the release said.

The bank will reset the rates at the end of every fifth year, the release said.

BoM had, earlier, reduced its benchmark prime lending rate (BPLR) by 25 basis points to 12.25 per cent, on a monthly compounding basis, effective 6 July 2009.

He bank had also reduced interest rates on domestic term deposits across all maturity slabs of 91 days and above up to amount of less than Rs1 crore.