Recently, RBI had cut the repo rate. Now 6 big banks of the country have reduced the interest rate on home loans. These include big banks like Canara Bank, Punjab National Bank (PNB), Union Bank of India and Bank of Baroda. They have cut the repo linked lending rate (RLLR) by up to 0.25 percent.
What is Repo Linked Lending Rate (RLLR)?
RLLR i.e. Repo Linked Lending Rate is the rate at which banks lend to customers. It is directly linked to RBI's repo rate. Customers who opt for RLLR linked home loan, their interest rate decreases or increases according to the change in RBI's repo rate. In home loan, most customers choose floating rate, which is linked to RLLR. After the reduction in RLLR, banks give customers the option of reducing EMI or reducing the loan period.
Which banks reduced interest rates on loans?
| Bank | Previous RLLR/Repo-Based Rate | Revised RLLR/Repo-Based Rate | Effective, Date |
|---|---|---|---|
| Canara Bank | 9.25% | 9.00% | 12-Feb-25 |
| Bank of Baroda | Not mentioned | 8.90% (BRLLR) | 10-Feb-25 |
| Bank of India | 9.35% | 9.10% | 7-Feb-25 |
| Union Bank of India | 9.25% | 9.00% | 11-Feb-25 |
| Punjab National Bank (PNB) | 9.25% | 9.00% | 10-Feb-25 |
| Indian Overseas Bank | 9.35% | 9.10% | 11-Feb-25 |
After RBI reduced the repo rate, 6 major banks of the country have reduced the interest rates on home loans. Let's know which banks are included in this and what are their new rates
1. Canara Bank
Canara Bank has reduced its RLLR from 9.25 percent to 9.00 percent. This new rate will be effective from February 12, 2025. This reduction will be applicable on accounts opened after February 12, 2025.
2. Bank Of Baroda
Bank of Baroda has reduced its repo linked lending rate (RLLR) to 8.90 percent. This new rate will be effective from February 10, 2025. Existing and new customers of the bank will get direct benefit from this.
3. Bank of India
Bank of India has reduced its RLLR from 9.35 percent to 9.10 percent. This new interest rate has come into effect from 7 February 2025. This will reduce the EMI of both new and old customers.
4. Union Bank Of India
Union Bank of India has reduced its RLLR from 9.25 percent to 9.00 percent. This new rate will be effective from February 11, 2025. This will provide interest relief to new home loan borrowers.
5. Indian Overseas Bank
Indian Overseas Bank (IOB) has reduced its RLLR by 25 basis points, bringing it down from 9.35 per cent to 9.10 per cent. This change will be effective from February 11, 2025.
6. Punjab National Bank (PNB)
PNB has also reduced its RLLR from 9.25 percent to 9.00 percent. This new rate will be effective from February 10, 2025. With this decision, PNB customers will get cheaper home loans.
What will be the benefit to home loan customers?
Reduction in RLLR by banks will provide relief to customers taking home loans. This will make new home loans cheaper and the EMI of existing customers may decrease. If customers want, they can reduce the tenure of the loan instead of reducing the EMI. This will help them reduce the amount of interest paid.
About the Author:
Ravi Thakur
Ravi Thakur is a seasoned writer specializing in SEO-driven sports content. With expertise in crafting engaging blogs, news articles, and entertainment pieces, Ravi brings a unique perspective to the world of sports journalism.
His skills extend beyond insightful analysis, as he is adept at keeping sports enthusiasts informed by regularly updating points tables and schedules for major events in football and cricket.Ravi Thakur's passion for sports and his knack for blending SEO principles with compelling writing make him a go-to source for those seeking a dynamic and informative sports content experience.