This bank has reduced its loan rates, bringing cheaper home and car dreams... EMI relief too

Bank of Maharashtra Cuts Loan Rates: Home and Car Loans Get Cheaper, EMI Burden Eases

In a major relief for retail borrowers, Bank of Maharashtra (BoM) has slashed its loan interest rates soon after the Reserve Bank of India (RBI) reduced the repo rate. With a 25-basis-point (bps) cut across key retail loan categories, buying a home, car, or even funding higher education has now become significantly more affordable for customers.

The bank announced that the revised rates will help both existing borrowers—who will see a reduction in their EMI outgo—and new applicants who have been waiting for a favourable time to avail a loan.

New, Lower Interest Rates Announced

Bank of Maharashtra has rolled out the following revised rates for retail loans:

• Home loans will now start at 7.10%, making it one of the more attractive offerings among public sector banks.

• Car loans will begin at 7.45%, placing the bank among the most competitive lenders in the auto finance segment.

• Education loans and other retail credit products have also become cheaper following the reduction.

These revised interest rates are expected to encourage more customers to borrow for housing, vehicles, and other personal needs, especially at a time when multiple banks are gearing up to pass on the benefit of RBI’s policy decision.

Why RBI’s Repo Rate Cut Matters

The repo rate—now brought down to 5.25%—is the rate at which the RBI lends to commercial banks. When this rate is lowered, banks get funds at a cheaper cost. As a result, they can pass on this benefit to customers through reduced loan interest rates.

In its December monetary policy review, the RBI signalled a supportive stance for economic growth by reducing borrowing costs in the financial system. Bank of Maharashtra is among the first major public sector banks to immediately reflect this change in its retail loan pricing.

Relief for Existing Borrowers

For individuals already repaying home or car loans, the lowered rates will directly reduce their monthly instalments. Depending on the loan amount and tenure, borrowers can expect noticeable savings over the remaining loan period.

For example:

• A home loan customer with a long tenure may save thousands of rupees annually.

• Car loan borrowers will also see lighter monthly EMIs, improving overall cash flow for households.

This comes as a welcome relief at a time when many families are juggling multiple financial commitments.

A Golden Opportunity for New Loan Applicants

For people planning to buy a home or vehicle, the timing couldn’t be better. A 25-bps reduction significantly improves affordability:

• Lower EMI = Higher loan eligibility

• More competitive rates = Lower long-term repayment burden

The bank has highlighted that this move is aimed at supporting customers’ financial needs while helping them achieve long-term goals such as home ownership and vehicle acquisition.

Boost to Market Competition

Bank of Maharashtra’s decision positions it strongly in the competitive retail lending space. By offering one of the lowest interest rates in the sector, the bank is likely to attract more customers, especially those looking to refinance existing loans or compare rates before borrowing.

The reduction also places the bank in line with industry leaders that proactively pass on policy benefits to customers, thereby strengthening trust and customer loyalty.

Conclusion

Bank of Maharashtra’s interest rate cut is a significant and timely move that brings immediate benefits to millions of customers. With cheaper home and car loans and reduced EMIs, borrowers now have an excellent opportunity to turn their dreams—whether it’s buying a house, owning a car, or funding education—into reality.

As RBI continues to support economic momentum through monetary easing, customers can expect more such benefits from the banking sector in the coming months.