State-owned Bank of Maharashtra on Sunday said it will link its retail loans with the Reserve Bank of India's repo rate, a move that will make loans cheaper.
"It will be effective from Sept. 1 for the ensuing festival season. Presently, it will be for new customers only and in due course it will be extended to existing customers as well," Bank of Maharashtra said in a statement.
The bank has already linked its home loan interest rates with the RBI repo rate, passing on the rate cut benefits directly to consumers, the public sector bank said.
Announcing a slew of measures to boost growth, Finance Minister Nirmala Sitharaman on Friday said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced EMIs for housing, vehicle and other retail loans.
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