Home Loan: After the Repo Rate cut in the Reserve Bank of India (RBI), now public sector banks have also started giving relief to customers. Indian Bank and Canara Bank have announced a cut in interest rates of home and vehicle loan. Due to this, customers have become cheaper and will also get relief in EMI.
Indian Bank reduced interest rates
Indian Bank has reduced its home loan interest rate from 8.15% to 7.90% per annum. At the same time, the interest rate on vehicle loan has now come down from 8.50% to 8.25% annually. Apart from this, the bank has also offered limited time offers like processing fees and documentation charges free to customers taking loan. The bank has said that it is committed to customers to give cheap and convenient loans to help the customers buy their dream home or car.
Canara Bank reduced RLR
Canara Bank has also reduced its repo linked lending rate (RLR) 25 basis point after RBI’s repo rate cut. The new RLLr has come into force from 12 April 2025. Now the interest rates of the bank’s home loan will start from 7.90%, while the wheel loan rates will be 8.20% annually. The bank says that this will provide relief to both new and existing customers in EMI and will reduce financial burden.
Why RBI reduced the repo rate
RBI has recently reduced the repo rate from 6.25% to 6.00% to promote economic activities in the country. This step has been taken amid softening and global uncertainties in inflation. The direct benefit of this deduction will now be given to those who are planning to buy a house or a car. Also, those whose loans are already running, their monthly installment can also be reduced.
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