Home Loan Interest Rate: Everyone dreams of owning their own home. If you are also dreaming of buying a house, then your dream is about to come true. The country’s largest bank, the RBI, recently reduced the repo rate by 0.25%. Following this, many major banks have reduced their interest rates. This has made home loans cheaper. These include SBI, PNB, HDFC, and several other major banks, which are now offering home loans at lower rates.
EMI will be reduced
It is worth noting that after the reduction in the repo rate, loan rates are also decreasing, and taking out a loan has become easier. Banks are offering loans to their customers at cheaper rates. For example, if you take a home loan of Rs 50 lakh for 20 years, instead of 8.5% interest, you will now pay 7.25%, resulting in a saving of Rs 3900 on the EMI.
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Which banks have reduced home loan rates?
Canara Bank – Canara Bank has reduced its RLLR by 0.25% to 8%. This rate came into effect from December 12, 2025. Customers whose loans are linked to RLLR will soon see a reduction in their EMI.
Punjab National Bank (PNB) – PNB has reduced its RLLR from 8.35% to 8.10%. This change includes a 10 basis point reduction and has been effective since December 6, 2025.
State Bank of India (SBI) – SBI has reduced its lending rate by 0.25%, providing relief to customers. These new rates came into effect on December 15, 2025. SBI has reduced interest rates on MCLR, EBLR, and RLLR. Bank of Baroda – Bank of Baroda has reduced its retail loan lending rate from 8.15% to 7.90%. This change came into effect on December 6, 2025.
Bank of India – Bank of India has reduced its RBLR from 8.35% to 8.10%. This change came into effect on December 5, 2025.
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Bank of Maharashtra – Bank of Maharashtra has also reduced its RLLR by 0.25% to 7.10%. This rate is now the cheapest for loan borrowers. Under this, home loans start at 7.10% and car loans at 7.45%.
Indian Overseas Bank (IOB) – Indian Overseas Bank has set its RLLR at 8.10%, effective from December 15, 2025. In addition, the bank’s 1-year MCLR is 8.80% and the 3-year MCLR is 8.85%.
Indian Bank – Indian Bank has reduced its RBLR from 8.20% to 7.95% and cut its MCLR by 5 basis points. This rate came into effect on December 6, 2025.