
Good news for borrowers: PNB, BoB, BOI, Indian Bank cut home loan interest rates
In a significant development for home loan borrowers, four major public sector banks
Punjab National Bank
(PNB),
Bank of Baroda
(BoB),
Indian Bank
and
Bank of India
(BOI have announced reductions in their home loan interest rates. These revisions come on the heels of the Reserve Bank of India's (RBI) decision to cut the repo rate by 50 basis points (bps), bringing it down from 6.00% to 5.50% in the monetary policy review held on June 6, 2025. The central bank has now reduced the repo rate by a total of 100 basis points (1%) since February 2025.
Impact on home loan borrowers
RBI's rate actions have a direct impact on home loan interest rates that are linked to the repo rate, or Repo Linked Lending Rates (RLLR). A lower repo rate usually translates into a lower RLLR, which means that consumers will pay less in interest over the course of the loan term and have fewer EMIs (equivalent monthly installments).
Big savings for home loan borrowers as EMIs to fall significantly after RBI cuts repo rate by 50 bps
Still confused between New vs Old Tax Regime? Find out which one saves you more with our tax calculator!
What is RLLR?
Repo-linked lending rate (RLLR) is the interest rate at which banks extend loans to customers, based on the repo rate set by RBI. The term 'repo-linked lending rate' refers to an interest rate that is linked to the repo rate. An RBI circular issued in October 2019 mandates that banks link their retail loans to external benchmark lending rates, known as E-BLR. Consequently, the repo rate has become the benchmark for most banks.
The impact of the reduction of RLLR will be different on old and new home loan borrowers. Most of these banks have passed on the reduction benefit to new borrowers immediately. However, their old borrowers will get the benefit as per their corresponding interest rate reset cycle.
FD interest rate up to 9.10%: These banks are still offering over 8% interest on fixed deposits for senior citizens
Live Events
Which banks have slashed home loan rates?
Punjab National Bank (PNB)
In a regulatory filing, 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.
Bank of Baroda (BoB)
Bank of Baroda, in compliance with SEBI's disclosure norms, informed the exchanges that it has reduced its Baroda Repo Based Lending Rate (BRLLR) from 8.65% to 8.15%, effective June 7, 2025. This is also a 50 basis point reduction, in line with the RBI's move.
'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
Bank of India has also joined the rate-cut bandwagon, reducing its Repo Based Lending Rate (RBLR) from 8.85% to 8.35%, effective June 6, 2025.
The bank in a BSE announcement stated, 'Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Repo Based Lending Rate (RBLR) has been changed w.e.f. 06.06.2025. 2. Today, RBI has revised the Repo Rate from 6.00% to 5.50% (decrease of 50 bps).The change in RBLR is as under. The effective RBLR is revised from 8.85% to 8.35%, down by 50 bps.'
Indian Bank
Indian Bank has cut its Repo Linked Benchmark Lending Rates (RBLR) from 8.70% to 8.20%, with the revised rate effective from June 6, 2025, the bank informed in regulatory filing.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


India Gazette
2 hours ago
- India Gazette
RBI to re-issue Sovereign Green Bonds of Rs 5000 cr in upcoming Rs 30,000 cr govt securities auction
New Delhi [India], June 10 (ANI): The Reserve Bank of India (RBI) has announced the re-issue of sovereign green bonds (SGrBs) as part of the upcoming government securities (G-Secs) auction scheduled for June 13, 2025. As per a notification by RBI on Monday, the total notified amount for sale is Rs 30,000 crore, which includes Rs 5,000 crore of 6.98 per cent SGrBs maturing in 2054. RBI said 'Government of India (GoI) has announced the sale (re-issue) of three dated securities for a notified amount of Rs 30,000'. Sovereign green bonds are government-issued bonds specifically aimed at financing environmentally sustainable projects. The proceeds from these bonds are allocated to sectors such as renewable energy, clean transportation, sustainable water management, and energy efficiency. These bonds serve both to promote climate-conscious growth and to attract environmentally focused investors. In addition to the sovereign green bonds, two other dated securities will also be re-issued: Rs 11,000 crore of 6.79 per cent government securities maturing in 2031, and Rs 14,000 crore of 7.09 per cent securities maturing in 2074. The auction will be conducted using a multiple price method via RBI's e-Kuber platform. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids between 10:30 a.m. and 11:30 a.m. on the auction day. The results will be announced on the same day, and successful bidders will need to make payments on June 16, 2025. The government also retains the option to accept up to Rs 2,000 crore of additional subscriptions against each of the securities. The stocks will be eligible for 'When Issued' trading from June 10 to June 13, 2025, allowing investors to trade the securities even before they are formally issued. Primary Dealers may submit underwriting bids for the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the same day. The re-issuance of sovereign green bonds highlights that the government's continued commitment to fund green infrastructure and sustainability initiatives, aligning with India's broader environmental and economic goals. (ANI)


India Gazette
2 hours ago
- India Gazette
India's rising household debts are not worrisome: SBI report
New Delhi [India], June 10 (ANI): While household debt in India has been increasing over the past three years, a State Bank of India (SBI) report suggested that it's not necessarily a cause for alarm, especially when considering the context of the economy and the type of debt. It said India's household debt is manageable and not worrisome at all, as two-thirds of the portfolio is of prime and above credit quality and the rise is attributed to a growing number of borrowers rather than an increase in average indebtedness. Additionally, asset creation, such as home and vehicle loans, makes up 25 per cent, while productive purposes like agriculture, business, and education loans constitute 30 per cent. The Reserve Bank of India (RBI) views the rise in household debt as manageable, particularly since two-thirds of the portfolio consists of prime and above-credit-quality borrowers. As of now, India's household debt is at a relatively low level, 42 per cent, compared to 49.1 per cent for other emerging market economies (EMEs). SBI's analysis revealed that 45 per cent of loans, including personal loans, credit cards, and consumer durable loans, are used for consumption purposes. The RBI's ongoing rate-easing cycle has already seen a 100-basis-point reduction in the repo rate, leading to an automatic decrease in externally linked benchmarked interest rates. This is expected to provide substantial relief to households. During this rate-cut easing cycle, it is estimated that approximately 80 per cent of retail and MSME loan portfolios are linked to the External Benchmark Lending Rate (EBLR), suggesting potential savings of around Rs 50,000 to Rs 60,000 for households. This easing cycle is projected to continue for about two years, further contributing to a decline in household interest costs. Last week, the RBI announced a reduction in the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent. This rate cut was accompanied by a cut in the Cash Reserve Ratio (CRR) by 100 basis points in four tranches of 25 basis points each starting September 6. (ANI)


Time of India
2 hours ago
- Time of India
The e-rupee is really taking off — and growing faster than UPI or crypto
The e-rupee is really taking off — and growing faster than UPI or crypto RBI's Digital Rupee is still in its pilot phase, but already looks like a big hit. TOI explains what this currency is all about