Indian Bank vs Bank of Maharashtra Home Loan: Which Offers Better Rates? (2025)
When comparing the Indian Bank vs Bank Of Maharashtra Home Loan offers for 2025, one needs to know how these two big banks differ. Indian Bank provides a floating rate starting at 7.90% p.a., whereas Bank of Maharashtra offers relatively cheaper starting rates of 7.85% p.a. Both banks offer home loans with flexible tenure of up to 30 years, enabling you to control EMIs at various phases of life. Bank of Maharashtra levies processing charges but is waiving them till September 2024, whereas Indian Bank does not charge any processing fees, which may save you a considerable amount in the beginning.
Indian Bank vs Bank of Maharashtra Home Loan: Which Offers Better Rates? (2025)
Need a home loan in 2025? Indian Bank vs Bank Of Maharashtra Home Loan leads the pack with interest rates starting at 7.90% p.a. This makes them the most affordable options right now. SBI follows closely with rates beginning at 8.00% p.a. for loans up to ₹30 lakh. Bank of Maharashtra’s rates can go up to 7.85% based on your loan amount. Indian Bank’s competitive rates also make it worth considering.
Your final interest rate depends on several factors. A credit score of 750 or higher will help you get better terms. Your income, job type, and loan size affect the rate too. Banks usually charge a processing fee between 0.25% to 1% of the loan amount.
This comparison between Indian Bank vs Bank Of Maharashtra Home Loan will help you choose the most suitable lender for your home loan in 2025. Consider the rates, fees, eligibility criteria, and loan features carefully to make an informed decision.
Indian Bank vs Bank Of Maharashtra Home Loan: Key Comparison Overview
A comparison of Indian Bank vs Bank Of Maharashtra Home Loan offerings for 2025 helps potential homeowners learn about their rate structures and features. Let’s get into how these two public sector banks measure up.
| Features | Bank of Maharashtra | Indian Bank |
| Starting Interest Rate | 7.85% p.a. | 7.90% p.a. |
| Interest Rate Range | 7.85% – 9.30% | 7.90% – 9.20% (Floating) |
| Fixed Rate Option | Not mentioned | 9.45% – 9.65% p.a. |
| Processing Fee | 0.25% (up to ₹25,000) + GST | Nil |
| Maximum Loan Tenure | 30 years | 30 years |
| Women Borrower Benefit | 0.05% reduction (CIBIL < 725) | 55 bps reduction (salaried with check-off) |
| Loan-to-Value Ratio | Up to 90% (≤₹30 lakh) 80% (₹30-75 lakh) 75% (>₹75 lakh) |
Up to 90% (≤₹30 lakh) |
| Credit Score’s Effect | Best rates available at scores >800 | Best rates available at scores >750 |
| Prepayment Penalty | Nil on floating rate | Nil on floating rate |
| Special Features | Maha Super Flexi Housing Loan scheme Discounts on car & education loans |
Fixed-rate options available |
| Defense Personnel Benefit | 0.05% reduction | Not mentioned |
| Self-employed Benefit | Higher rates apply | 30 bps reduction |
Which Home Loan Saves You More in 2025?
The actual rupee savings between Indian Bank vs Bank Of Maharashtra Home Loan can shape your financial future significantly. Let’s see exactly how much you could save with each bank in 2025.
Bank of Maharashtra starts with a lower interest rate of 7.85% p.a., which beats Indian Bank vs Bank Of Maharashtra Home Loan’s rate of 7.90% p.a. Your monthly EMI with Bank of Maharashtra would reach ₹47,351 for a ₹50 lakh home loan over 15 years. Indian Bank’s EMI would be slightly higher.
The interest rates don’t tell the whole story. Bank of Maharashtra takes a processing fee of 0.25% plus GST, though they’ve waived it until September 30, 2024. Indian Bank doesn’t charge any processing fees on their home loan products. This could save you thousands right at the start.
Both banks give special rate cuts to specific borrowers:
| Borrower Category | Bank of Maharashtra | Indian Bank |
| Women Borrowers | 0.05% reduction | 55 bps reduction (salaried with check-off) |
| Defense Personnel | 0.05% reduction | No specific mention |
| Self-employed | Higher rates | 30 bps reduction |
Your credit score makes a big difference in your rate. Bank of Maharashtra gives its best rate of 7.80% to borrowers with scores above 800. Scores below 600 mean paying up to 9.00%. Indian Bank also adjusts rates based on credit profiles.
Banks have cut their rates after RBI’s 25 basis point repo rate reduction. This means real savings – borrowing ₹50 lakh for 20 years shows about ₹1,600 yearly savings with Bank of Maharashtra due to the 0.05% difference.
Now looks like the perfect time to get a home loan. Financial experts predict rate cuts up to 100 bps throughout 2025. To save the most money, look at:
- Your exact credit score
- Processing fees versus interest rate savings
- Special category discounts you qualify for
- Likelihood of prepayment (both banks charge no prepayment fees)
Want to find the most affordable home financing option? Get customized offers from both banks to see which saves you more money.
Additional Features That Can Affect Your Savings
The features of Indian Bank vs Bank Of Maharashtra Home Loan beyond interest rates and loan amounts can make a big difference in your savings. You’ll make better financial decisions by knowing these details that match your goals. Take a good look at these features before you choose your home loan provider.
Bank of Maharashtra won’t charge processing fees until September 30, 2024. After that, they charge 0.25% (up to ₹25,000) plus GST. Indian Bank, on the other hand, doesn’t charge any processing fees on their home loan products. This could save you ₹25,000 right away on a big loan.
Both banks give special benefits worth a look. Indian Bank vs Bank Of Maharashtra Home Loan options include interest rate reductions by 0.05% for women borrowers and defense personnel. The bank also gives discounts on car loans and education loans to their home loan customers. This helps you save money across different types of loans.
Neither bank charges any fees for prepayment, pre-closure, or part-payment on floating-rate loans. This means you can reduce your interest payments if you get extra money.
Top-up loans are another way to save. Bank of Maharashtra starts these loans at 8.35% with extra charges based on CIBIL scores. They add 50 bps for scores 800 and above, 75 bps for scores 750-799, and 100 bps for scores 700-749. You need a good payment history for the past 12 months and a CIBIL score of at least 700 to qualify.
Bank of Maharashtra’s Maha Super Flexi Housing Loan scheme links your home loan to a savings account. Extra money in your account reduces your loan balance and interest temporarily, but you can still use it when needed. This allows you to reduce the interest costs while having easier access to your money.
Both banks allow you to borrow for 30 years OR until the age of 75. This gives you options as your EMIs will vary at different stages of life. When comparing Indian Bank vs Bank Of Maharashtra Home Loan, this feature gives you options as your EMIs will vary at different stages of life.
Conclusion
In comparing Indian Bank vs Bank of Maharashtra home loans in 2025, BOM has slightly lower interest rates starting at 7.85% compared to Indian Bank’s 7.90% while Indian Bank has zero processing fees which saves approximately ₹25,000. The two banks present advantages based on available categories: BOM has offers like discounts for women with lower CIBIL scores, and defense personnel, and Indian Bank has a payoff favor that includes, salaried women with check-off facilities and self-employed people. Your financial situation, credit score (750+), and other factors apart from interest rates will decide who is lower at the end of 2025 and who will save you lakhs during the loan period. As you investigate options, watch for possible rate cuts of as much as 100 bps at some point during 2025.
