Public-sector lender, Bank of Maharashtra has slashed its home loan rates effective from September 16 as part of its festive offer.

With this, housing loans upto Rs 30-lakh, the rates for the first two years will be 8 per cent, for the third year 8.5 per cent, for the fourth year 9.5 per cent and for the fifth year 9.75 per cent, the bank said in a press release.

Loans sanctioned between September 16 and December 31, 2009 will benefit from the offer, the bank said.

For loans above Rs 30 lakhs, interest rates for the first two years will be 8.25 per cent, for the third year 9 per cent and for the fourth and fifth year 9.75 per cent, the bank said.

Rates will be reset at the end of every fifth year, the bank said.

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