Indian Bank has cut down its interest rates on home and vehicle loans following the recent policy move by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). Indian bank has cut down interest rates on home loan from the existing 8.15% p.a. to 7.90% p.a. Furthermore, the bank has also lowered the interest rates on vehicle loan from the existing 8.50% to 8.25% p.a. This represents a 25 basis point cut.
The bank reduced the interest rates with the aim to provide relief to borrowers by lowering EMIs and promoting affordable credit access. Additionally, the Bank is also offering benefits such as discounted processing fees and zero documentation charges to its consumers. Through these initiatives, Indian Bank aims to provide customers accessible and user-friendly financing choices, so they can own a house or a vehicle.
Prior to this, India’s largest public sector bank (PSB) State Bank of India (SBI) had announced a reduction in its lending rate by 25 basis points. With this, the bank brought its Repo Linked Lending Rate (RLLR) to 8.25%. As the results, loans such as home, personal and automobile became cheaper for both existing and new borrowers.
SBI has also lowered its External Benchmark-Based Lending Rate (EBLR) by 0.25% to 8.65%, and the rates are effective from April 15, 2025.
RBI MPC
The RBI has announced its first monetary policy of Fiscal Year (FY) 2025-26 on April 9. The RBI has reduced the benchmark repo rate by 25 basis points (bps) to 6.00% from 6.25%. This decision was taken unanimously by the MPC. This is the second consecutive rate cut, with the last reduction done in February, this year. Moreover, the marginal standing facility rate stands at 6.25% as of now.
Furthermore, the MPC decided to change its policy stance from “neutral” to “accommodative”.
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