After the RBI reduced the repo rate by half a percentage point, banks promptly lowered home loan interest rates. This change was immediately reflected in the repo-linked lending rate (RLLR). Right now, many major banks have reduced their lending rates that are linked to the repo rate. This comes after the Reserve Bank of India cut the repo rate by 0.50% in June 2025. As a result, people who have taken or plan to take home loans with floating interest rates linked to the repo rate are likely to benefit from lower EMIs. Which banks have announced loan interest rate cuts? Here’s a quick look at the details.
Which All Banks Announced The Interest Rate Cut?
SBI’s revised rate came into effect from June 15. Accordingly, the base interest rate is 7.75%. Along with this, a premium for credit risk will also be included while calculating the final rate. Website says- The latest RLLR: 7.75% + Credit Risk Premium (CRP). Earlier, it was RLLR: 8.25% + Credit Risk Premium (CRP).
Indian Overseas Bank has reduced its lending rate by half a basis point. Accordingly, interest rate has been reduced from 8.85% to 8.35%, effective from June 12, 2025.
Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25% for loans tied to the External Benchmark rate. This change comes after the Reserve Bank of India lowered the repo rate from 6.00% to 5.50% during its recent Monetary Policy Committee meeting. The new rate will take effect from June 12, 2025. With this move, borrowers who have loans linked to the RLLR will see a drop in their interest payments.
Bank of Baroda has reduced its Repo Based Lending Rate (BRLLR) from 8.65% to 8.15%, effective from June 7, 2025. This is also a 50 basis point reduction, in line with the RBI’s move. The revised rate has been effective since June 7. Bank said- “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that BRLLR has been revised from 8.65% to 8.15% with effect from 07.06.2025,” the bank said.
Bank of India has also reduced its repo-based lending rate from 8.85% to 8.35%, effective June 6, 2025. The rate has been effective since June 6.
Union Bank of India has reduced its EBLR and repo-based lending rates by half a percentage point. With this, the interest rate has come down to 8.25% (comprising the new repo rate of 5.50% plus a spread of 2.75%). Bank Said- “Following the Reserve Bank of India’s reduction in the policy repo rate by 50 basis points, Union Bank of India has revised its key lending rates w.e.f. 11.06.2025. These changes include downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points. With this move, Union Bank of India has completely aligned its EBLR and RLLR with the recent RBI rate cut which will be beneficial to new and existing Retail (Home, Vehicle, Personal, etc.) and MSME borrowers.”
Punjab National Bank (PNB) announced that it has revised its Repo Linked Lending Rate (RLLR) from 8.85% to 8.35%, effective June 9, 2025. The new rate reflects the 50 basis point cut in the repo rate and includes a Bank Spread of 20 basis points.
“The Exchange is hereby informed that consequent upon the decrease in Repo rate by RBI on 06.06.2025, the Bank has revised RLLR from 8.85% (including BSP of 20bps) to 8.35% (including BSP of 20bps) with effect from 09.06.2025,” PNB stated in its filing.
Indian Overseas Bank has reduced its lending rate (RLLR) by 50 basis points from 8.85% to 8.35%, effective from June 12, 2025.
The Reserve Bank of India reduced the repo rate by 0.50% to 5.50% on June 6. Earlier, the rate had been cut by 0.25% each time. In response, banks are now lowering their interest rates in proportion to the repo rate cut. The list above may not include all banks, so it’s best to check with your bank directly to confirm the current interest rate.
