Following the RBI's repo rate cut, several banks have reduced their interest rates. This move benefits both new and existing borrowers, leading to lower EMIs.
Planning to get a home loan? Now's a good time. On June 7, the RBI cut the repo rate by 0.50% to 5.5%. Since February 2025, the RBI has reduced the repo rate by a total of 1%. This directly benefits customers. Many banks have lowered home loan interest rates, meaning your EMI could be lower. This relief isn't just for new borrowers – existing ones also benefit.
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RBI Guidelines for Home Loan
Bank of Baroda has passed on the full benefit of the RBI's repo rate cut to its customers. The bank has reduced its RLLR by 50 basis points to 8.15%. According to the bank's website, its home loans are available at a starting rate of 8%. However, it's unclear if these rates have been updated after the recent rate cut.
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Home Loan Guidelines
Punjab National Bank has also provided relief to customers. The bank has reduced its RLLR from 8.85% to 8.35%, effective June 9. "Good news for customers! Now your EMI will be even more affordable. PNB's new home loan rates start at just 7.45%", the bank wrote on social media. This means the starting interest rate for home loans from PNB is now 7.45%, while car loans are available at 7.80% per annum.
Bank of India has also reduced its interest rates by 50 basis points. The bank's RLLR is now 8.35%. This information came via the bank's exchange filing. UCO Bank has also provided relief to borrowers. The bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR), effective June 10.
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Home Loan
The new rates are as follows: 1-day MCLR: 8.25% to 8.15%; 1-month: 8.45% to 8.35%; 3-months: 8.60% to 8.50%; 6-months: 8.90% to 8.80%; 1-year: 9.10% to 9.00%. The benefit of two consecutive repo rate cuts is now directly reaching customers. The EMI for those with loans linked to the repo rate (like RLLR-based home loans) has decreased. This makes the dream of owning a home a bit easier.
