If you are dreaming of buying a house or want to get relief from the EMI of the existing loan, then this news is no less than a boon for you. The Reserve Bank of India (RBI) made a 50-basis-point (0.50%) cut in its repo rate in June 2025. After this historic decision, 7 big banks in the country have also reduced their repo-linked lending rate (RLLR) and external benchmark lending rate (EBLR). Its direct benefit will be available to those customers who want to take or have already taken a floating home loan.
These 7 banks made home loans cheaper
After the repo rate cut, the major banks of the country have responded immediately and reduced their home loan rates, which will provide great relief to the customers:
1. Indian Overseas Bank
Indian Overseas Bank has reduced its interest rates from 8.85% to 8.35% RLLR in June. The new interest rates have come into effect from June 12, 2025. This bank is a great option for those customers who are looking for loans at low rates.
2. State Bank of India (SBI)
The country’s largest bank, SBI, has reduced the RLLR from 8.25% to 7.75% + Credit Risk Premium (CRP). This new rate takes effect on June 15, 2025. SBI rates always serve as a benchmark in the market, and this cut is a big relief for home loan customers.
3. Union Bank of India
Union Bank of India has reduced both EBLR and RLLR by 50 basis points, bringing EBLR to 8.25%. This change has come into effect from June 11, 2025. This change is not limited to home loans only, but will also apply to personal and MSME loans.
4. Canara Bank
Canara Bank has reduced RLLR from 8.75% to 8.25%, which will be effective from June 12, 2025. This is also good news for home loan borrowers.
5. Punjab National Bank (PNB)
PNB has reduced RLLR from 8.85% to 8.35% from June 9, 2025, which includes a bank spread of 20 basis points. PNB is also one of the big banks in the country, and this reduction will benefit many customers.
6. Bank of Baroda (BoB)
Bank of Baroda has reduced its BRLLR from 8.65% to 8.15%. The new rates are effective from 7 June 2025. This bank has also been at the forefront of providing competitive rates to its customers.
7. Bank of India
Bank of India has also reduced the RBLR from 8.85% to 8.35%. This has become effective from 6 June 2025, due to which the customers of this bank will also get the benefit of lower EMI.