Cheap Loans: These banks have made loans cheaper; now you can get a loan at a lower interest rate..

If you're planning to take out a loan, this news will bring you relief. Following the RBI's reduction in the repo rate, four banks, including Bank of Baroda and Indian Bank, have lowered their interest rates. The new rates have been reduced by up to 0.25%, making EMIs cheaper. Here's a look at how much each bank has reduced its rates and what impact it will have on your finances.

If you're dreaming of buying your own home or planning to take out a loan, this news will bring a smile to your face. The RBI provided significant relief to the common man on Friday by cutting the repo rate by 25 basis points. Immediately after this decision, some of the country's major banks also followed suit and announced a reduction in loan interest rates.

While almost all banks are preparing to lower their loan rates after the repo rate reduction, four banks have taken the lead. Bank of Baroda, Indian Bank, Bank of India, and Karur Vysya Bank have announced a reduction in interest rates for their customers. If you take out a loan from these banks or have an account with them, you will now have to pay less interest than before.

Bank of Baroda has reduced its interest rate from 8.15% to 7.90%. Similarly, Indian Bank has also reduced its rates from 8.20% to 7.95%. Both banks have implemented their new, lower rates effective December 6, 2025.

Bank of India has reduced its interest rate to 8.10%, effective December 5.  Karur Vysya Bank has also reduced its rates to 8.55%. The reduction in the repo rate allows banks to borrow money at a lower rate from the RBI, and banks are passing this benefit directly to their customers.

This year has been a boon for borrowers. After February, April, and June, this is the fourth time interest rates have been reduced in December. The repo rate, which was 6.50% at the beginning of the year, has now decreased to 5.25%. This directly means that your EMI burden will now be significantly lighter compared to last year.

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