Customers of these 4 banks are happy, EMI will soon be reduced after the reduction in RLLR, they will have to wait a bit!

Reserve Bank of India (RBI) recently reduced the repo rate by 0.50% (50 basis points) after the Monetary Policy Committee (MPC) meeting, due to which the repo rate has come down to 5.5%. After the reduction in repo rate, many banks have started reducing their RLLR and MCLR. If your home loan is linked to RLLR, then you will soon start getting its benefits and the burden of EMI will be reduced. But if the loan is linked to MCLR, then you may have to wait a bit. Recently, some banks have changed RLLR and MCLR after the reduction in repo rate. Know here what is this and which banks' customers will get the benefit soon.

Repo-linked lending rate (RLLR) is the interest rate at which banks lend to customers based on the repo rate set by RBI. It is directly linked to the repo rate. An RBI circular issued in October 2019 states that banks should link their retail loans to external benchmark lending rates, known as EBLR. In such a situation, now the repo rate has become a benchmark for most banks. The effect of a cut in RLLR is different on old and new home loan borrowers.

MCLR is the minimum rate below which no bank can give loans to customers. Actually, when you take a loan from a bank, the minimum rate of interest charged by the bank is called the base rate. Now banks are using MCLR in place of this base rate. But when the MCLR rate decreases, the interest rates of your loan do not decrease immediately. The EMI of loan borrowers changes only on the reset date. In such a situation, people whose loans are linked to MCLR may have to wait a little longer for their loans to become cheaper.

State-owned Punjab National Bank has cut the repo-linked landing rates (RLLR) after the RBI cut the repo rate and reduced the rates from 8.85% to 8.35%. According to the bank, no change has been made in MCLR and base rates. The new rates will be effective from June 9, 2025.

Bank of India has also made changes in the repo-based landing rates (RBLR) from June 6 with a cut in the repo rate. RBLR and RLLR are both the same thing. Both are linked to the repo rate of the Reserve Bank of India (RBI). After the cut, the RBLR of Bank of India has come down from 8.85% to 8.35%.

Indian Bank has also reduced its RBLR from 8.70% to 8.20%, the revised rate will be effective from June 6, 2025, the bank said in a regulatory filing.

Bank of Baroda (BoB) has also reduced its Baroda Repo Based Lending Rate (BRLLR) from 8.65% to 8.15%. This new rate has come into effect from June 7, 2025. The bank has given this information under SEBI regulations.

UCO Bank has cut MCLR by 0.10% to 8.15%, which was earlier at 8.25%. MCLR for 1 month is now 8.35%, which was earlier at 8.45%. MCLR for 3 month tenure will now be 8.50%, which was earlier at 8.60 percent. Whereas MCLR for 6 months will now be 8.80% which was earlier at 8.90%. While for one year MCLR will come down from 9.10% to 9%.

HDFC Bank has cut up to 10 basis points, that is, now people will get loan from HDFC Bank 0.10 percent cheaper. Let us tell you that last month also the bank had cut MCLR by 0.15 percent. After this cut, now the MCLR range of the bank has become 8.9 percent to 9.10 percent. Earlier this range was between 9 percent to 9.20 percent. This cut made by HDFC Bank has come into effect from 7 June 2025.

Karur Vysya Bank has also cut MCLR. 6 month MCLR and 12 month MCLR have been cut. The 6-month MCLR has been reduced from 9.9% to 9.8%. The one-year MCLR has been reduced from 10% to 9.8%. The new rates will be applicable from June 7.

To find out whether your loan is linked to RLLR or MCLR, you can check your loan statement. In the statement, there will be information about the type of interest rate of your loan. Apart from this, you can also get information about this by contacting the customer care of your bank.

If a customer has taken a home loan based on MCLR and wants to convert it into a RLLR based home loan, then many banks are providing this facility. To convert, the customer will have to pay a one-time charge. This charge may vary in different banks.

RBI has cut the repo rate by 1% from February to June. In the monetary policy review of February and April this year, the repo rate was cut by 0.25-0.25%. Whereas in the June meeting, a cut of 0.50% has been made.