6th August 2020 – RBI keeps Repo Rate unchanged at 4%

Current MCLR rate of Bank of Maharashtra ranges from 6.80% to 7.30% varying by reset frequency of the loan. Bank of Maharashtra revises MCLR rates on a monthly basis and benchmark its interest rates for home loan and other loans to MCLR rates of different tenor.

Tenure wise MCLR	Bank Maharashtra Rate Today
Overnight	6.80%
1 Month	7.00%
3 Month	7.20%
6 Month	7.25%
1 Year	7.30%
Bank Maharashtra Base Rate	9.40%

Bank of Maharashtra Interest Rates

Home Loan Interest Rates	8.20% * Floating	Detail
Personal Loan Interest Rates	10.85% to 11.85%	Detail
Car Loan Interest Rates	9.25%	Detail
Business Loan Interest Rates	14.50% to 15.50%	Detail
Fixed Deposit Interest Rates	3.00% to 5.00%	Detail
RD Interest Rates	6.00% to 6.60%	Detail

MCLR of Bank of Maharashtra

Bank of Maharashtra revises its MCLR rate on a monthly basis. Latest MCLR rates of Bank of Maharashtra as announced on 07 Sep 2020 are:

• Overnight MCLR Rate is 6.80%. The rate was last revised on 07 Aug 2020 to 6.80% from 7.00%
• 1 Month MCLR Rate is 7.00%. The rate was last revised on 07 Sep 2020 to 7.00% from 6.90%
• 3 Month MCLR Rate is 7.20%. The rate was last revised on 07 Jul 2020 to 7.20% from 7.40%
• 6 Month MCLR Rate is 7.25%. The rate was last revised on 07 Sep 2020 to 7.25% from 7.30%
• 1 Year MCLR Rate is 7.30%. The rate was last revised on 07 Sep 2020 to 7.30% from 7.40%

Bank of Maharashtra MCLR Rate Trend

• Effective 1st April 2016, Bank of Maharashtra has been directed by RBI to fix its loan interest rates benchmarked to MCLR rate which is based on its marginal cost of funds. Earlier, the bank fixed its loan interest rates to Base Rate, which was based on total cost of funds of the bank. Bank of Maharashtra MCLR rates for different tenors range from 6.80% to 7.30%.
• RBI allows banks to set their own MCLR Rate based on their marginal cost of funds which means the cost of raising new funds for the bank. So, Bank of Maharashtra decides and announces its MCLR rate regularly based on prescribed formula and policy rate changes by RBI in its monetary policy.
• Note that the RBI does not decide the MCLR Rate of any bank. RBI only announces the repo rate, which influences the cost of raising new funds for the bank. Banks may or may not decide to change their MCLR rate in response to changes in the repo rate. For instance, Bank of Maharashtra may decide to bring a lower cut in their MCLR rate compared to a Repo Rate cut. If RBI cuts the repo rate by 50 basis points or 0.5%, Bank Maharashtra may decide to cut its MCLR rate only by 0.25% based on its internal funding and liquidity position. Hence, it is important to compare the MCLR rate change of Bank of Maharashtra with that of RBI Repo Rate and MCLR Rate changes of other banks before taking a decision to take a loan from Bank of Maharashtra.
• MCLR rate can be revised by Bank of Maharashtra every month. However, it is not mandatory for Bank of Maharashtra to revise its rate every month and it may choose to retain the same rate for a longer period keeping them unchanged.

Bank of Maharashtra Home Loan Interest Rate and MCLR

• Every floating rate loan sanctioned by Bank of Maharashtra is benchmarked to its MCLR Rate for a particular tenure, say 1 month or 3 month or 6 months.
• Shorter duration loans such as cash credit, OD facility, personal loans are linked to short tenure MCLR rate while longer duration loans such as home loan, loan against property, vehicle loan are linked to longer duration MCLR rates.
• The applicable rate of interest on a floating rate loan will consist of two parts - the applicable benchmark rate and the spread or margin above the benchmark.
• Your loan from Bank of Maharashtra will be repriced periodically depending upon the tenure of the MCLR to which it is linked. Bank of Maharashtra home loan rate is benchmarked to MCLR Base Rate which will be repriced after . Say, you take a loan from Bank Maharashtra at current MCLR rate of % plus spread of 20 bps. So, the loan will initially be priced at 0.2%. Its next re-pricing will be done after from now. If the 3 Month MCLR rate after increases by 10 bps, the loan will be priced at 0.3% for the next period.

Compare MCLR Rate Movement

Compare Bank of Maharashtra MLCR Rates with Other Banks