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Bank Maharashtra Home Loan Interest Rates 2020

Bank of Maharashtra Housing Loan Interest Rate

Last Updated 14th Sep 2020

Current Bank of Maharashtra Home loan interest rates for Sep 2020 starts at 8.20% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.50%.

Loan AmountBank of Maharashtra Home Loan Floating Rate
Upto ₹ 30 Lakh8.20%
₹ 30 Lakh - ₹ 75 Lakh8.20%
₹ 75 Lakh - ₹ 1 Cr8.30%
Above ₹ 1 Cr8.30%

Bank of Maharashtra Home Loan Interest Rates

Bank of Maharashtra offers various products on home loan. Bank of Maharashtra home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Bank of Maharashtra Home Loan Interest Rate starts from 8.20%.
  • Bank of Maharashtra charges a processing fees of Upto 0.50%.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Bank of Maharashtra is ₹ 748 per lakh offered at the lowest interest rate of 8.20% at the longest loan tenure of 30 years.
  • Bank of Maharashtra allows prepayment of home loans with Nil charges on floating rate loans.
  • Bank of Maharashtra has an average customer rating of 2.5/5.0 from customers who have taken a home loan from the bank.

Bank of Maharashtra Home Loan Rate

Current Bank of Maharashtra home loan interest rates are in the range of 8.20% to 9.50%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.20%. The table below gives the interest rates on various housing finance schemes of Bank of Maharashtra.

Bank of Maharashtra Home Loan Scheme Interest Rates
Bank of Maharashtra Home Loan Floating8.20% - 9.50%

Bank of Maharashtra Bank Home Loan Charges

Bank of Maharashtra Home Loan Processing Fee

Bank of Maharashtra home loan processing charges are upto 0.50% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Bank of Maharashtra housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Bank of Maharashtra Home Loan Prepayment

Bank of Maharashtra charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Bank of Maharashtra for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Bank of Maharashtra, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Bank of Maharashtra.

Bank Maharashtra Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Bank of Maharashtra Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Bank of Maharashtra if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Bank of Maharashtra Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8.2% to 9.5%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • Bank of Maharashtra Home Loan Interest Rate: 8.20% to 9.50%
  • Processing Fee payable to Bank of Maharashtra: Upto ₹ 10,000. Current offer for processing fee is Upto 0.50%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 748 for a 30 years ₹ 1 Lakh loan at 8.20% (lowest rate, longest time period) to ₹ 2,100 for a 5 years ₹ 1 Lakh loan at 9.50% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 36,011 for 5 years loan to ₹ 1.79 Lakh for 30 years loan

Bank of Maharashtra’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Bank of Maharashtra.

FAQs

What is Bank Maharashtra Home Loan interest rate?

Bank Maharashtra Home Loan interest rate ranges between 8.20% to 9.50%.

Why should I opt for balance transfer to Bank of Maharashtra?

Bank of Maharashtra offers competitive Home Loan rates with the best EMI of ₹ 748 per lakh availed at a low-interest rate of 8.20% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 748 per lakh, you should consider the option for a loan transfer to Bank of Maharashtra from your existing bank. EMIs can be calculated through Bank of Maharashtra Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Bank of Maharashtra?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Bank of Maharashtra housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Bank of Maharashtra housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Bank of Maharashtra housing loan rate of interest change in the future?

  • Bank of Maharashtra offers RBI Repo Rate linked Home Loan which starts at 8.20%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Bank of Maharashtra Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.2% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Bank Maharashtra Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Bank of Maharashtra Repo Rate linked Home Loan rate will cut from 8.20% to 8.05%.

What is the current Bank of Maharashtra Home Loan rate?

The current Bank Maharashtra Home Loan rate starts from 8.20% with a processing fee of Upto 0.50%

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Bank of Maharashtra Home Loan News - Sep 2020
  • 2019-08-30 : Bank of Maharashtra links its home loan with repo rate
    With effect from September 1, 2019, the Bank of Maharashtra will link its retail loans with RBI’s repo rate. Currently, the repo rate linked interest rate will be offered to new customers. However, this facility will soon be extended to the old customers as well. As of now, the bank has linked its home loan interest rate with the repo rate.
  • 2019-08-26 : Bank of Maharashtra links retail loans rates with repo rates from September 1
    Bank of Maharashtra (BoM) will link its retail loans, including home loans and car loans with RBI’s repo rate from September 1, 2019. The move will make the loans cheaper only for the new customers, and in due course, it will be extended for existing customers also.
  • 2019-07-30 : Bank of Maharashtra posts a net profit of Rs. 81 crores for the June quarter
    Public sector lender, Bank of Maharashtra (BoM) has posted a net profit of Rs. 81 crores as against a loss of Rs. 1,119 crore in the year-ago period. Healthy growth in net interest income, the decline in loan-loss provision burden, and a huge tax write-back helped the bank to achieve the profit. The lender also has plans to achieve significant growth across its retail loans, including home loans and mortgage loans during this year.
  • 2019-06-28 : Bank of Maharashtra plans to raise up to Rs. 3,000 crore equity capital
    Public sector lender, Bank of Maharashtra is planning to raise up to Rs. 3,000 cr equity capital through various modes, including the public offer or preferential issuance of shares. The lender will utilize the raised funds to augment its business growth and to improve its overall retail loan portfolio, including home loans and mortgage loans.
  • 2019-06-10 : Bank of Maharashtra reduces one-year MCLR rates by 10 bps to 8.60%
    Bank of Maharashtra (BoM) has cut its benchmark one-year MCLR by 10 basis points to 8.60%. The move is supposed to make retail loans like mortgage loans and housing loans cheaper. Now for overnight and one month, the rate stands at 8.15% and 8.25% respectively, which is down by 0.5 basis points. For 3 months, the rate has been revised to 8.40%. While for 1 year the rate now stands at 8.60%. The revised rates are effective from June 7, 2019.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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