Good news for loan borrowers: These 5 banks have reduced their interest rates following the RBI's decision.
RBI Repo Rate Cut: The loan market across the country has changed rapidly following the Reserve Bank of India's fourth repo rate cut. The latest 25 basis point reduction has forced banks to reduce interest rates, providing direct relief to customers on home, car, and personal loan EMIs.
RBI Repo Rate Cut: The Reserve Bank of India (RBI) has continued its aggressive policy on the interest rate front. Last week, the central bank's 25 basis point repo rate cut has changed the lending environment in the country. This move has prompted banks to adjust their rates, reducing the cost of home, car, and personal loans for ordinary customers.
What is the repo rate after the fourth cut?
This decision by the RBI marks the fourth repo rate cut in 2025. This series of rate cuts, which began in February, has now brought the policy rate to 5.25%. Overall, a cumulative reduction of 1.25% has been recorded so far this year. The RBI took this step after successfully controlling inflation, paving the way for a growth boost.
Which 5 banks have made loans cheaper?
| Bank Name | Cut | New Rates Effective From | Key Details |
|---|---|---|---|
| Bank of India (BOI) | 25 bps reduction in RBLR | From 5 December | RBLR reduced from 8.35% to 8.10%. |
| Indian Bank | 25 bps cut in RBLR; 5 bps cut in MCLR | From 6 December | RBLR reduced from 8.20% to 7.95%. |
| Bank of Baroda (BoB) | 25 bps reduction in Repo-Based Lending Rate | From 6 December | Rate reduced from 8.15% to 7.90%. |
| Karur Vysya Bank | 10 bps reduction in MCLR | From 7 December | MCLR reduced from 9.55% to 9.45%. |
| Bank of Maharashtra (BoM) | 25 bps cut in repo-linked retail loans | From 6 December | Home loans now start at 7.10% and car loans at 7.45%. |
This interest rate cut is a positive sign for all customers whose loans are linked to the repo rate, reducing their monthly installments (EMIs) and making borrowing more attractive.
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