6 Major Banks Cut Home Loan Interest Rates After RBI Repo Rate Cut – Check How Much Your EMI Will Reduce

The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 5.25% in its December meeting, prompting six major banks to lower home loan interest rates. Borrowers linked to MCLR, RLLR, BRLLR, or RBLR will benefit directly, with reduced EMIs and, in some cases, shorter loan tenure. Here’s a detailed breakdown:

1. HDFC Bank – MCLR Cut

• Old MCLR: 8.35% – 8.60%

• New MCLR: 8.30% – 8.55%

The reduction of up to 5 basis points on various tenure loans will provide relief to home loan and other retail loan customers linked to MCLR.

2. Punjab National Bank (PNB) – RLLR Reduced

• Old RLLR: 8.35%

• New RLLR: 8.10%

The new rate is effective from 6 December 2025, as per PNB’s BSE filing.

3. Bank of Baroda – BRLLR Cut

• Old BRLLR: 8.15%

• New BRLLR: 7.90%

The cut will slightly reduce EMIs for retail loan customers.

4. Indian Bank – RLLR Reduced

• Old RLLR: 8.20%

• New RLLR: 7.95%

This rate applies to all loans linked to RLLR from 6 December 2025.

5. Bank of India – RBLR Cut

• Old RBLR: 8.35%

• New RBLR: 8.10%

The reduction is effective from 5 December 2025.

6. Bank of Maharashtra – Cheaper Home and Car Loans

• Home Loan: 7.35% → 7.10%

• Car Loan: 7.70% → 7.45%

In addition, the bank waived all processing fees, making loans even more affordable for new customers.

What This Means for Borrowers

• EMIs for existing and new loans linked to these benchmark rates will decrease slightly.

• For some borrowers, the tenure to repay the loan may also reduce.

• The RBI’s repo rate cut has encouraged banks to pass on benefits to millions of customers, easing the burden of home and car loans.