Following the path of bigger banks, the state-run Bank of Maharashtra has reduced its home and vehicle loan rates and has also cut down the deposit rates across various maturities.
According to BoM release the loans sanctioned up to December 31, 2009 will get the benefit of rate reductions.
After revision the bank will be offering home loan up to Rs 30 lakh at a fixed rate of 8 per cent for the first two years, 8.5 in the third year, 9.5 per cent in the fourth and 9.75 per cent in the fifth year.
The release stated after the fifth year, the rates will be reset as per the benchmark prime lending rate of the bank.
On loan above Rs 30 lakh, for the first two years the bank will offer rate of 8.25 per cent, then for the third year the rate will be 9 per cent and subsequently for fourth and fifth years the rate will be 9.75 per cent.