Latest news with #ExternalBenchmark
Time of India
5 days ago
- Business
- Time of India
Home loan EMIs to fall: Canara Bank, Union Bank, IOB cut lending rates after RBI repo rate cut
Impact of RBI rate cut on home loan borrowers What is RLLR? Academy Empower your mind, elevate your skills Bank Old RLLR Revised RLLR Effective Date Canara Bank 8.75% 8.25% 12-Jun-25 Union Bank of India 8.75%* 8.25% 11-Jun-25 Indian Overseas Bank 8.85% 8.35% 12-Jun-25 Leading public sector banks, such as Canara Bank Union Bank of India , and Indian Overseas Bank have lowered their Repo Linked Lending Rates (RLLR) in response to the Reserve Bank of India 's recent 50 basis point repo rate cut . Home loan borrowers can anticipate some relief in interest rates as a four major public sector banks Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Bank and Bank of India (BOI) had announced reductions in their home loan interest rates 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).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 EBLR. Consequently, the repo rate has become the benchmark for most impact of the reduction of RLLR will be different for old and new home loan borrowers. Most of these banks have passed on the reduction benefit to new borrowers immediately. However, old borrowers, who have already have a home loan, will get the benefit as per their corresponding interest rate reset Overseas Bank has announced the reduction of Repo Linked Lending Rate (RLLR) by 50 basis points from 8.85% to 8.35%, effective from June 12, Bank of IndiaThe Union Bank of India has reduced both the External Benchmark Lending Rate (EBLR) and the Repo Linked Lending Rate (RLLR) by 50 basis points, bringing its EBLR down to 8.25% (comprising the new repo rate of 5.50% plus a spread of 2.75%).According to a press release from the bank, '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.'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 decision follows the Reserve Bank of India's recent 50 basis point cut in the repo rate from 6.00% to 5.50%, announced during the latest Monetary Policy Committee (MPC) meeting. The revised lending rate will come into effect from June 12, 2025. This move will lower borrowing costs for customers with loans linked to RLLR.
India.com
5 days ago
- Business
- India.com
Canara Bank, Union Bank, IOB Slash Home Loan Rates --Check Latest Lending Rates
New Delhi: Canara Bank, Union Bank and Indian Overseas Bank (IOB) have announced reduction in their lending rates following the Reserve Bank of India's (RBI) announcement cutting the repo rate by 50 basis points, from 6.00% to 5.50%, in the latest Monetary Policy Committee (MPC) meeting. Canara bank has reduced Repo Linked Lending Rate (RLLR) from 8.75 % to 8.25 % (applicable on its assets portfolio linked to External Benchmark rate). The revised lending rates will be effective from 12 June 2025, said Canara Bank. "The RLLR has been reduced by 0.50% (50 basis points), directly reflecting the decrease in the RBI's repo rate. This move will lower borrowing costs for customers with loans linked to RLLR. Depending on their loan terms, customers may benefit from reduced EMIs (Equated Monthly Instalments) or a shorter loan tenure. Canara Bank, with a commitment to provide better banking experience to its customers, has offered the due benefits to borrowers by reducing RLLR," the bank said in a statement. Union Bank and Indian Overseas Bank Hhave also announced a downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points.
