April 2025: These 8 Banks Are Offering the Cheapest Repo-Linked Home Loans – Save More on Your EMI!

Following the Reserve Bank of India's recent decision to cut the repo rate by 0.25%, several banks have slashed their home loan interest rates, bringing relief to new borrowers. Public sector banks like Union Bank, Central Bank of India, and Bank of Maharashtra are now offering home loans at just 8.10%, making them some of the most affordable options in April 2025.

📉 RBI's Move Makes EMIs Cheaper

On April 9, 2025, the RBI reduced the repo rate, leading many banks to revise their Repo Based Lending Rates (RBLR). For example:

• Punjab National Bank lowered its RBLR from 9.10% to 8.85%.

• Indian National Bank cut its rate by 35 basis points, effective April 11.

• Bank of India and UCO Bank also reduced lending rates by 25 basis points.

🏦 Top 8 Banks Offering the Lowest Home Loan Interest Rates (April 2025)

Here’s a list of public sector banks currently offering the lowest repo-linked home loans:

Bank Name	Starting Interest Rate (Per Annum)
Union Bank of India	8.10%
Central Bank of India	8.10%
Bank of Maharashtra	8.10%
Canara Bank	8.15%
Bank of Baroda	8.15%
State Bank of India (SBI)	8.25%
Punjab & Sind Bank	8.25%

📌 Note: These are base interest rates and may vary depending on your credit score and loan eligibility.

🏦 Public vs Private Sector Banks

While public sector banks are offering home loans at rates starting from 8.10%, most private banks continue to offer rates starting at 8.5% or higher, making public banks the go-to choice for affordable EMIs this month.

⚠️ Credit Score Matters

Keep in mind: the final rate you receive will depend on your credit profile, income level, and loan tenure. Even within the same bank, better credit scores can help you secure lower interest rates.

💸 Why This Matters

With the RBI's repo rate cut and banks adjusting lending rates, April 2025 is a great time to apply for a home loan. Choosing the right bank could help you save thousands annually on your EMI payments.