New Delhi: In a huge relief to the people who have taken home loans or are planning to buy homes, several banks in the country have reduced the interest rates on their home loans. The lenders reduced the rates after the Reserve Bank of India on February 7, 2025 reduced the repo rate.
The central banking authority announced the repo rate cut by 25 basis points in its Monetary Policy Committee meeting. Now it has reduced to 6.25 percent. Five banks of the country have reduced the interest rates on home loans, which include Bank of Baroda, Canara Bank, Punjab National Bank, Union Bank of India, Bank of Baroda and Bank of India.
Repo Linked Lending Rate (RLLR) is a rate at which banks provide loans to its customers. This rate is directly linked to the repo rate of the Reserve Bank. RLLR gives customers the option to either reduce their EMI or reduce the loan tenure. After RBI Governor Sanjay Malhotra reduced the repo rate, five major banks have reduced their repo rate related interest rates i.e. RLLR.
- Canara Bank has reduced its RLLR from 9.25 percent to 9.00 percent. The public sector bank has stated that the new rate will be effective from 12 February 2025. However, the new rates will be applicable only to those accounts which are opened on or after February 12, 2025.
- Bank of Baroda has also reduced its RLLR from 9.25 percent to 9.10 percent. This rate is effective from February 7, 2025.
- Union Bank of India has announced to decrease its RLLR from 9.25 percent to 9.00 percent with effect from 11th February 2025.
- Indian Overseas Bank has announced a cut of 25 basis points in its RLLR, after which the interest rate has come down from 9.35 percent to 9.10 percent.
- Punjab National Bank (PNB) has reduced its RLLR from 9.25 percent to 9.00 percent. This new rate is effective from 10 February 2025.
Following a 25 basis point repo rate cut by the Reserve Bank of India (RBI) on February 7th, 2025, several major Indian banks have reduced their home loan interest rates. Banks including Canara Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, and Bank of India have lowered their Repo Linked Lending Rates (RLLR), offering relief to homebuyers. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
