Good news! This bank has reduced interest rates. How much cheaper will home, auto, and education loans become?

Public sector lender Bank of Maharashtra (BoM) announced on Sunday a 0.25 percent reduction in its repo rate-linked lending rate (RLLR).
This will make home, auto, and education loans, among others, cheaper.

RBI reduces repo rate
BoM's decision to cut interest rates comes after the Reserve Bank of India (RBI) reduced the repo rate by 0.25 percent. In a statement, Bank of Maharashtra said that with the changes effective from Saturday, the bank's housing loans will start at an interest rate of 7.10 percent and car loans at 7.45 percent, which are among the lowest in the banking industry.

Relief for customers
The Reserve Bank of India's Monetary Policy Committee on Friday reduced the repo rate by 0.25 percent to 5.25 percent and maintained its neutral stance, leaving room for further rate cuts. Meanwhile, BoM said that the bank's interest rate reduction reflects its commitment to providing the best financial inclusion to its customers and helping them fulfill their dreams.
In the current high-interest rate environment, the bank is bringing smiles to its customers' faces by making retail loans more affordable.

Why was the repo rate reduced?
On Friday, the Reserve Bank of India's Monetary Policy Committee unanimously reduced the policy repo rate by 25 basis points to 5.25% with immediate effect. This decision by the RBI comes at a time when data showed that India's real Gross Domestic Product (GDP) growth accelerated to 8.2% in the second quarter and average headline inflation fell to 1.7%, breaching the lower tolerance threshold (2%) of the RBI's mandated inflation target (4%).

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