Bank of Maharashtra likely to raise home loan rates

Bank of Maharashtra is likely to announce a hike in home loan rates tomorrow.

"Our Asset-Liability Commitee will meet tomorrow to decide on the interest rates. There is a possibility of hiking home loan rates," BOM chairman M D Mallya told PTI.

Interest rates have hardened as cost of funds have gone up significantly in the recent past.

Many banks and housing financial institutions increased their home loan rates yesterday by up to one per cent after Reserve Bank hiked short-term rates by 25 basis points on July 25, the second time in the last two months.

Many banks depend on low-cost funds from RBI to meet short-term requirements, with that gone, many lenders like SBI, HDFC, Punjab National Bank and Oriental Bank of Commerce have increased home and Prime Lending Rates (PLRs).

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