Planning to Buy a Home? This PSU Bank Is Offering Home Loans at Just 7% With Zero Processing Fee

State-owned Bank of Maharashtra (BoM) is now running a limited period offer called Monsoon Dhamaka and has cut its home loan interest rate to 7% per annum, down from the earlier 7.1%.

The bank announced the revised rate in a statement issued over the weekend, positioning the move as a bid to make home financing more affordable ahead of the festive season.

What is Included in Monsoon Dhamaka Offer?

The Monsoon Dhamaka scheme comes with together three benefits for borrowers: a lower interest rate, a complete waiver of processing fees, and no documentation charges. Bank of Maharashtra described this as a "triple benefit" to reduce both the upfront cost of taking a loan and the overall EMI burden on customers. The bank also trimmed its car loan rate to 7.45 per cent per annum as part of the same push, with the fee waivers applying there as well.

Who Actually Gets 7%

The 7% rate is not a flat, across-the-board offer. According to details available on the bank's website, this lowest slab is reserved for salaried borrowers with a credit score of 800 or higher. Those with a CIBIL score between 750 and 799 will be offered a starting rate of 7.25 per cent instead. Since pricing on home loans is closely tied to credit score under the bank's repo-linked lending framework, borrowers with lower scores can expect correspondingly higher starting rates. Anyone planning to apply should check their credit score before assuming they qualify for the headline rate.

For a borrower taking a large-ticket home loan, the waiver of processing and documentation fees alone can save a meaningful amount upfront, on top of the interest saving from the rate cut itself. Bank of Maharashtra has claimed that both its home loan and car loan rates are currently among the lowest in the banking industry,

This is not the first time Bank of Maharashtra has used a festive-branded rate cut to drive retail lending. The bank ran a similar "New Year Dhamaka" offer in January 2024, when it cut home loan rates to 8.35 per cent with a processing fee waiver, and had rolled out a comparable Independence Day offer as well.