If you are thinking of taking a home loan or have already taken a loan, then this news is for you. Four big public sector banks of the country have also reduced their home loan interest rates. If you are planning to buy a house or have already taken a home loan, now your EMI is going to be reduced. The Reserve Bank of India (RBI) has cut 0.50% (50 basis points) in the repo rate in its monetary policy review on 6 June 2025, reducing this rate from 6% to 5.50%. Since then, many big banks of the country are reducing the rates related to home loan rates.
Which banks reduced interest rates?
1. Punjab National Bank (PNB)
PNB has reduced its Repo Linked lending Rate (RLR) from 8.85% to 8.35%. This new rate has come into force today from 9 June 2025.
2. Bank of Baroda (BOB)
Bank of Baroda has reduced its Baroda Repo Based lending Rate (BRLR) from 8.65% to 8.15%. This new rate has come into force from 7 June 2025.
3. Bank of India (BOI)
BOI has reduced its Repo Based lending Rate (RBLR) from 8.85% to 8.35%. This new rate is applicable from 6 June 2025.
4. Indian Bank
Indian Bank has reduced its Repo Linked Benchmark Lending Rate (RBLR) from 8.70% to 8.20%. This new rate has also come into force from 6 June 2025.
What is Repo Rate and RLR?
Repo Rate is the rate on which RBI gives loan to banks. When RBI reduces the repo rate, interest rates on banks like home loans also decrease. RLLR (REPO Linked lending rate) is the interest rate by which banks give loans to their customers and it is directly related to RBI’s repo rate.
What will be the benefit to those taking home loans?
EMI will be reduced due to reduced interest rate. The total cost of the loan will be lower than before. Those taking new loans will get immediate benefit. Old loans will get this benefit according to the interest reset date.
Why did RBI reduce Repo Rate?
RBI has cut a total of 1% (100 basis points) since February 2025. Its aim is to keep inflation under control and provide cheap loans to people, which increases the market expenses and the economy will speed up.
Silver Price: Silver price on new peak, know what is the reason for record breaking boom