Home Loan: Everyone aspires to find their own home. However, with rising inflation and hefty home loan payments, many dreams remain unfulfilled. If you’re in the market for a house, a great opportunity has just arisen. Following the Reserve Bank of India’s repo rate cut, several major banks in the country have lowered their interest rates. As a result, home loans are now more affordable. This includes prominent banks like State Bank of India, Punjab National Bank, and HDFC Bank, where home loans have seen a decrease in rates. Recently, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 5.25 percent.

With EMIs decreasing, loans are becoming more affordable, making it easier for new buyers to purchase a home than ever before. Banks are now providing lower home loan rates to their clients. For instance, if you have a ₹50 lakh home loan over a 20-year term, the interest rate has dropped from 8.5% to 7.25%, leading to EMI savings of around Rs 3,900.

Why have loans become more affordable?

After a repo rate cut, the cost of lending for banks decreases. The RBI has made it clear that both public and private banks should extend this benefit to their customers. This is why numerous banks are lowering their lending rates, including RLLR, RBLR, and MCLR.

Find out how much cheaper the home loans from various banks have become:

1. Canara Bank

Canara Bank has lowered its repo-linked benchmark lending rate (RLLR) by 0.25%. The rate has now decreased from 8.25% to 8%. This new rate will take effect from December 12, 2025. Existing customers with loans linked to the RLLR will soon notice a reduction in their EMIs. Depending on their loan agreement, the loan term may also be shortened.

2. Punjab National Bank

Punjab National Bank (PNB) has reduced its repo-linked lending rate (RLLR) from 8.35% to 8.10%. The new rates include a basic service price (BSP) increase of 10 basis points. However, the bank’s marginal cost of lending rate (MCLR) and base rate remain unchanged. The new interest rates will be effective from December 6, 2025.

3. SBI made a big move

The largest bank in the country, State Bank of India (SBI), has offered substantial relief to its vast customer base. They’ve lowered their lending rates by as much as 0.25 percent. These updated rates took effect on December 15th. SBI has slashed interest rates across all categories, including MCLR, EBLR, and RLLR.

4. Bank of Baroda

Bank of Baroda has cut its benchmark retail loan lending rate from 8.15% down to 7.90%. This change will ease the burden on borrowers regarding their loan interest payments. The new rates are in effect from December 6, 2025.

5. Bank of India

Bank of India has also decreased its Repo Based Lending Rate (RBLR) from 8.35% to 8.10%, starting December 5, 2025. A notice from Bank of India on the BSE website states, “We would like to inform you that the Bank’s Repo Based Lending Rate (RBLR) has been lowered to 8.10% effective immediately from December 5, 2025.”

6. Bank of Maharashtra

Bank of Maharashtra has also brought joy to its customers. They’ve reduced their RLLR by 0.25%, setting the new rate at 7.10%. The bank claims that home loans now start at 7.10% and car loans at 7.45%, which are among the most competitive rates in the market.

7. Indian Overseas

Indian Overseas Bank (IOB) has updated its RLLR to 8.10%. This rate is effective from December 15, 2025. Consequently, the bank’s one-year MCLR (marginal cost of funds-based lending rate) is now 8.80%, while the three-year MCLR stands at 8.85%. The MCLR represents the minimum interest rate at which a bank can lend.

8. Indian Bank

Indian Bank has lowered its repo-linked benchmark lending rate (RBLR) from 8.20% to 7.95%. Additionally, the bank has reduced its marginal cost of funds-based lending rate (MCLR) by 5 basis points. The new rates are effective as of December 6.