Banking: After RBI's decision, these 5 banks reduced interest rates, know which bank will give you he cheapest loan..

If you have taken a loan from Punjab National Bank, Bank of India, UCO Bank, or Bank of Baroda, then there is good news for you. The Reserve Bank of India (RBI) has recently cut the repo rate by 0.50%. After this, these banks have also reduced the interest rates of their home, auto, and personal loans. Customers will get the direct benefit of this i.e. your EMI can now be less than before. With this, you will be able to save a lot.

RBI reduced the repo rate to 5.5% on June 7. A total of 1% has been cut since February 2025. After this, banks are also offering cheap loans (Cheapest Home Loans) to their customers.

Let us know about those 5 banks that are offering the cheapest loans to customers by reducing interest rates after RBI's decision...

Punjab National Bank (PNB) has reduced its Repo Linked Lending Rate (RLLR) from 8.85% to 8.35%. According to the bank, now those taking home loans from PNB will get loans at an interest rate starting from 7.45%. That is, your EMI can be cheaper now. At the same time, car loans will also be available at the rate of 7.80% per annum. Bank of India has also reduced its RLLR from 8.85% to 8.35%. This decision will provide relief to both existing and new customers. UCO Bank has reduced MCLR by 10 basis points, which will come into effect from June 10. Overnight MCLR is now 8.15%, one month 8.35%, three months 8.50%, six months 8.80% and one year 9.00%. Bank of Baroda has also announced a 50 basis point cut in its repo-linked lending rate (RLLR) for select loan tenures. After this, the starting interest rate of home loans on the bank's website is stated as 8%, but it is not clear whether the rates have been updated after the new cut or not. HDFC Bank has also cut MCLR by 10 points on all its loan tenures. Now overnight and one-month rates will be 8.90%, three months 8.95%, and six months to three years rates will be between 9.05% to 9.10%.

How will EMI be reduced?

If your loan is linked to the repo rate i.e. based on RLLR, then you will get direct benefit in EMI. The bank itself will reduce your EMI or reduce the loan period i.e. tenure. However, if the bank is only reducing the tenure and you want to reduce the EMI, then you can request the bank for this.

If the loan is old, there will be more benefits.

If your home loan is already running, then this time you can get more benefits. After the RBI cut the repo rate by 0.50%, many government banks have reduced the interest rates. Earlier, usually only new customers used to get the benefit of low interest rates, but this time the banks have changed the interest rates for old customers as well. Many banks are also reducing the extra charge levied on old home loans, which is called spread. This can reduce your EMI further than before, even if you have taken the loan a long time ago.

If you are thinking of taking a new home loan, then this may be the right time for you, because, after the reduction in interest rates, the loan has become cheaper than before.

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