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ShareMumbai: Taking a cue from bigger banks, the State-owned Bank of Maharashtra has slashed its home, vehicle loan rates besides reducing its deposit rates in various maturities.
The bank would offer home loans upto Rs30 lakh for 8% fixed rate in the first two years, 8.5 in the third year, 9.5% in the fourth year and 9.75% in the fifth year.
After the fifth year, the rates will be reset based on the benchmark prime lending rate of the bank, BoM said in a press release.
For loans above Rs30 lakh, the rate for the first two years will be 8.25%, 9% in the third year and 9.75% in the fourth and fifth years.
It has also reduced lending rates on vehicle loans. As per this, interest rates for the first three years of the loan has been fixed at 9.5%.
Loans sanctioned upto December 31, 2009 will avail the benefit of the rate reductions, it said.
Also, it reduced interest rates on term deposits by 0.25-0.5% across various maturities effective from November 16.
Recently, country's largest lender, State Bank slashed interest rates on domestic term deposits by 0.25-0.5% across maturities to reduce cost of funds.
