On 6 June 2025, the RBI reduced the repo rate by 50 basis points—from 6.00% to 5.50%. In response, major Indian banks have lowered their lending rates. The RBI, under Governor Sanjay Malhotra, aims to spur growth by making borrowing more affordable.
Leading public sector banks like Canara Bank, Union Bank of India and Indian Overseas Bank have slashed their Repo Linked Lending Rates (RLLR) after the RBI’s 50 basis point repo rate cut. The move is expected to bring relief to home loan borrowers.
Earlier, major public banks including Punjab National Bank, Bank of Baroda, Indian Bank and Bank of India had already lowered their home loan interest rates, passing on the RBI’s rate cut benefits to customers.
Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25%, following the RBI’s 50 basis point repo rate cut. The revised rate, effective June 12, 2025, will make borrowing cheaper for customers with RLLR-linked loans.
Indian Overseas Bank has reduced its Repo Linked Lending Rate by 50 basis points—from 8.85% to 8.35%. The revised rate will be effective from June 12, 2025, providing borrowers with reduced loan repayment burdens.
Union Bank of India has slashed both its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points. The revised EBLR now stands at 8.25%, combining the new 5.50% repo rate with a 2.75% spread.
The Union Bank of India’s rate cut move benefits both new and existing borrowers across retail and MSME sectors. By fully aligning its lending rates with the latest RBI policy, the bank ensures more affordable loans on home, vehicle, personal and business fronts.
The RBI’s repo rate cut directly lowers lending rates like RLLR, reducing home loan interest for borrowers. This means lower EMIs and overall interest outgo, offering much-needed financial relief. The move makes loans more affordable, especially for those with floating-rate home or personal loans.
