PHOTOS

Big Relief For Loan Borrowers: These 7 Banks Reduce Loan Rates After RBI Repo Cut

Updated:Jun 22, 2025, 02:13 PM IST

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RBI Cuts Repo Rate – EMI Relief For Borrowers

In a major move, the Reserve Bank of India cut the repo rate by 0.50% in June 2025, bringing it down to 5.50%. This decision has led several major banks to revise their repo-linked lending rates (RLLR). For borrowers with floating-rate home loans, this means lower EMIs and significant relief on monthly budgets.

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SBI Brings Down Lending Rates

State Bank of India (SBI) reduced its RLLR from 8.25 per cent to 7.75 per cent, effective June 15, 2025. The final interest rate for borrowers will be calculated by adding a Credit Risk Premium (CRP) to this base rate. With this revision, SBI home loan customers can expect some breathing room in their EMI payments.

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Indian Overseas Bank Offers Rate Cut

Indian Overseas Bank followed suit, bringing down its lending rate from 8.85 per cent to 8.35 per cent, effective June 12, 2025. The 50 basis point reduction mirrors the RBI’s move and is aimed at making loans more affordable for both new and existing customers.

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Canara Bank Revises RLLR

Canara Bank lowered its Repo Linked Lending Rate (RLLR) from 8.75 per cent to 8.25 per cent, effective June 12, 2025. This update benefits borrowers whose loans are tied to external benchmark rates, helping them save money over time through reduced interest payments.

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Bank of Baroda Slashes BRLLR

Bank of Baroda announced a cut in its BRLLR (Repo-Based Lending Rate) from 8.65 per cent to 8.15 per cent, effective June 7, 2025. The bank stated the change aligns with the RBI’s recent repo cut. Borrowers with repo-linked home loans will benefit from the lower rate.

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Bank of India Cuts Rates

Bank of India reduced its repo-based lending rate by 50 basis points—from 8.85 per cent to 8.35 per cent, effective June 6, 2025. This move directly benefits customers with floating interest rate loans, making EMIs more affordable going forward.

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Union Bank Reduces EBLR and RLLR

Union Bank of India cut both its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 0.50 per cent. The revised rate is now 8.25 per cent (Repo rate of 5.50 per cent + 2.75 per cent spread), effective June 11, 2025. The bank confirmed this change will benefit retail and MSME borrowers alike.

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PNB Offers EMI Relief Too

Punjab National Bank (PNB) revised its RLLR from 8.85 per cent to 8.35 pere cent, effective June 9, 2025. The rate includes a Bank Spread of 20 basis points. PNB said this revision is in line with RBI’s repo rate cut and aims to ease the financial load for its borrowers.