If you’re planning to take a home loan, this could be a good time for you. The Reserve Bank of India (RBI) made a significant cut of 0.50% in the repo rate on June 7, bringing it down to 5.5%. Since February 2025, the RBI has reduced the repo rate by a total of 1%.
Customers are directly benefiting from this decision. Many banks have reduced their home loan interest rates, which means your EMI could now be lower than before. The best part is that this relief isn’t just for new borrowers — existing loan holders are also eligible for the benefit.
Bank of Baroda: Full cut in interest rate
Bank of Baroda has given the full benefit of RBI’s repo rate cut to the customers. The bank has cut its Repo Linked Lending Rate (RLLR) by 50 basis points, which has now come down to 8.15%. According to the bank’s website, its home loans are available at an initial rate of 8%. However, it is not clear whether these new rates have been updated after the recent rate cut.
Also read: RBI policy: You will now save Rs 3,000 per month on your 50 lakh home loan EMIs – Here’s how
PNB: Now home loan EMI is even more affordable
Punjab National Bank has also given relief to the customers. The bank has reduced its RLLR from 8.85% to 8.35%, which will be effective from June 9.
The bank wrote on social media, “Good news for customers! Now your EMI will be even cheaper. PNB’s new home loan rates start from just 7.45%.”
That is, now those taking home loan from PNB will get an initial interest rate of 7.45%, while vehicle loan will be available at a rate of 7.80% per annum.
Bank of India: Interest rate cut, relief in EMI
Bank of India has also cut its interest rates by 50 basis points. Now the bank’s RLLR has come down to 8.35%. This information has come from the bank’s exchange filing.
UCO Bank: MCLR rates also changed
UCO Bank has also given relief to borrowers. The bank has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points, which will be effective from June 10.
The new rates are as follows:
Overnight MCLR: 8.25% ➝ 8.15%
One month: 8.45% ➝ 8.35%
Three months: 8.60% ➝ 8.50%
Six months: 8.90% ➝ 8.80%
One year: 9.10% ➝ 9.00%
Also read: RBI’s 50 bps repo rate cut: Check how much your EMI will drop on a Rs 50 lakh home loan over 20 years — Full calculation
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