Massive Relief For Home Loan Borrowers Of THESE 6 Banks; EMIs To Come Down Because...

After almost two years of stable rates, the Reserve Bank of India (RBI) lowered the repo rate by 25 basis points at its Monetary Policy Committee meeting, bringing it down to 6.25 percent. In response, several leading Indian banks lowered their repo-linked lending rates by 0.25 percent.

Based on the RBI's repo rate, banks lend money to consumers at an interest rate known as the Repo Linked Lending Rate (RLLR). Banks have been obligated since October 2019 to link their retail loans to external benchmark lending rates. Since then, most banks have used the repo rate as their benchmark.

Customers with RLLR-linked home loans experience fluctuating interest rates due to changes in repo rates, with most borrowers opting for floating-rate loans linked to RLLR.

According to the Canara Bank website, Canara Bank has revised the Repo Linked Lending Rate (RLLR) to 9.00 percent from 9.25 percent. This rate will apply only to new accounts opened on or after 12.02.2025 and accounts completing 3 years under the RLLR regime on or after 12.02.2025, as per the Canara Bank’s website.

For Retail Loans applicable BRLLR is 8.90 percent w.e.f. As per the bank website, 10.02.2025 (Current RBI Repo Rate: 6.25 percent + MarkUp/Base Spread 2.65 percent).

Bank of India’s repo-based lending rate has been reduced from 9.35 percent to 9.10 percent effective February 7, 2025.

The effective RLLR will be 9.10 percent (i.e. 6.25 percent + 2.85 percent= 9.10 percent) with effect from 11.02.2025, as per the bank website.

Union Bank of India has cut the repo-based lending rate to 9 percent from 9.25 percent effective February 11, 2025.

PNB has reduced the Repo Linked Lending Rate (RLLR) from 9.25 percent to 9 percent effective February 10, 2025.