Banking: Get cheap loans here! EMIs will be lower; these 4 banks have reduced interest rates..

If you are planning to take a home loan to buy a house, this news can be quite beneficial for you, as the RBI cut interest rates in its December monetary policy meeting. The Reserve Bank of India (RBI) announced a 25 basis point reduction in the repo rate on Friday. Following this, four major banks in the country have also reduced their loan interest rates.

After the reduction in the repo rate, almost all banks reduced their loan interest rates. The four banks that have announced a reduction in interest rates are Bank of Baroda, Indian Bank, Bank of India, and Karur Vysya Bank. These banks have already implemented the new rates.

How much have the interest rates been reduced?
If we talk about how much each of these banks has reduced the interest rate, Bank of Baroda has announced a reduction of 0.25 basis points, similar to the RBI, after which the interest rate decreased from 8.15 percent to 7.90 percent. Indian Bank, Bank of India, and Karur Vysya Bank have also made the same reduction in interest rates. The new rates have been effective from December 6, 2025.

Bank Name    Old Interest Rate    New Interest Rate    Reduction (%)    Effective Date
Bank of Baroda (BoB)    8.15%    7.90%    0.25%    December 6, 2025
Indian Bank    8.20%    7.95%    0.25%    December 6, 2025
Bank of India    8.35% (estimated)    8.10%    0.25%    December 5, 2025
Karur Vysya Bank (KVB)    8.80%    8.55%    0.25%    December 6, 2025
What is the Repo Rate?
The repo rate is the interest rate at which the RBI lends money to the country's banks. When this rate is reduced, banks get money at a cheaper rate and they also start offering loans at lower interest rates. This is why a reduction in the repo rate directly benefits ordinary people, making it cheaper for them to take out home loans.

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