Indian Bank: If you have a home loan, a business loan, or any other loan linked to RBLR from Indian Bank, there’s some great news for you. Your EMI is going to be lower than it was before, as the bank has cut its interest rates in line with the RBI’s new policy. The RBI recently lowered the repo rate from 5.50% to 5.25%. In response, Indian Bank has also decreased its repo-linked benchmark lending rate (RBLR) from 8.20% to 7.95%. These new rates will kick in on December 6, 2025.
This change means you’ll see a drop in loan interest, which could lead to a lower EMI or a shorter loan term, depending on your loan’s specifics.
On top of that, the bank has also lowered its 1-year MCLR by 0.05%, or 5 basis points. The rate has dropped from 8.85% to 8.80%, effective December 3, 2025.
Customers with loans linked to MCLR will also benefit right away from this.
New rates
Repo Rate: 5.50% → 5.25%
RBLR: 8.20% → 7.95%
Indian Bank encourages all customers to reach out to their nearest branch or check the bank’s website for more details. This reduction is set to provide relief to millions of customers, especially those who have been dealing with rising EMIs.
Which banks reduced interest rates?
Following a repo rate cut, nearly all banks reduce their loan interest rates. Following the RBI’s announcement, four banks have implemented the interest rate cuts. The banks that have reduced interest rates include Bank of Baroda, Indian Bank, Bank of India, and Karur Vysya Bank.