Bank of Maharashtra reduced interest rates on car and home loans, EMI will come down

The interest rate on home and car loans was cut by up to 20 basis points on Saturday by the government sector Bank of Maharashtra. Along with this, the bank has also announced a waiver of processing fees. This will reduce the EMI burden on the customers taking loans from the bank and they will have to pay fewer installments than before.

In a statement issued by the bank, it was said that the home loan interest rate has been increased to 8.50 percent, which was earlier 8.60 percent. At the same time, the interest rate on car loans has come down by 20 basis points to 8.70 percent, which was earlier 8.90 percent. The new interest rates will be applicable from August 14.

Along with the reduction in interest rates by the bank, the exemption in processing fees has also been announced. Customers will get relief from the announcement of a rebate in interest rates and processing fees. Earlier processing fees have been waived off in retail schemes, educational loans, and gold loans.

Monetary policy has been announced by RBI on Thursday. There was no change in the repo rate and it has been kept constant at 6.50 percent. Earlier, from May 2022 to February 2023, RBI had increased the repo rate by 2.50 percent. Due to this the repo rate was increased from 4.00 percent to 6.50 percent.

Due to this, the interest rate from home loans to car loans had increased from 2.50 to 3.00 percent and people have to pay more EMI than before. In such a situation, reducing the interest rates from the Bank of Maharashtra will reduce the EMI burden of the people.