Bank of Maharashtra cuts loan rates by 25 bps to 8.8% in line with RBI's repo rate

New Delhi: The state-owned Bank of Maharashtra (BoM) has announced a 25-basis-point reduction in the lending rate linked to the repo rate, which is 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 8.8 per cent, BoM said in a statement on Monday.

On Wednesday, the Reserve Bank of India (RBI) slashed key interest rates by 25 basis points for the second time in a row to support growth in the face of 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.