On June 7, the Reserve Bank of India (RBI) made a significant cut of 0.50% in the repo rate , bringing it down to 5.5%. Since February 2025, the RBI has reduced the repo rate by a total of 1%.
Home loan interest rates have been reduced by banks. Customers are benefiting from this decision. This means EMI could now be lower than what it was before. Existing loan holders are also eligible for the benefit and this relief isn't just for new borrowers.
Bank of Baroda customers are receiving the full benefit of RBI's repo rate cut. The bank has cut its Repo Linked Lending Rate by 50 basis points. It has now been lowered to 8.15%. At an initial rate of 8%, home loans are available as stated by the bank on their website. After the recent rate cut, it is not clear whether these new rates have been updated.
The Bank of India's exchange filing states that the interest rates are cut by 50 basis points. The bank's RLLR has come down to 8.35%.
Punjab National Bank has reduced its RLLR from 8.85% to 8.35%, they will be effective from June 9. This has given relief to the customers.
PNB's new home loan rates start from just 7.45%, as stated by the Punjab National Bank. Those taking home loan from PNB will get an initial interest rate of 7.45%. At a rate of 7.80%, vehicle loan will be available.
UCO Bank has also offered relief to borrowers. From June 10, the bank cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points.
The new rates are as follows:
Overnight MCLR: 8.25% ➝ 8.15%
One month: 8.45% ➝ 8.35%
Three months: 8.60% ➝ 8.50%
Six months: 8.90% ➝ 8.80%
One year: 9.10% ➝ 9.00%
Those whose loans are linked to the repo rate (such as RLLR based home loans), their EMI has become less than before.
