There is good news for home loan borrowers as major banks are passing on the benefits of the Reserve Bank of India’s recent repo rate cut. Following the RBI’s decision to lower the repo rate by 25 basis points to 5.25%, several leading banks have adjusted their lending rates downwards. This move is expected to result in reduced Equated Monthly Installments (EMIs) or a shorter loan duration for customers with loans tied to these rates.
To see how leading lenders have adjusted their rates following the recent rate cuts, here is a summary:
HDFC BANK
HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points across various tenures.
Post the revision, the bank’s MCLR now ranges from 8.30% to 8.55%, down from the previous range of 8.35% to 8.60%, providing relief to borrowers linked to MCLR.
PUNJAB NATIONAL BANK
Punjab National Bank has adjusted its Repo Linked Lending Rate (RLLR) from 8.35% to 8.10%, effective from December 6, 2025.
The bank swiftly made this change post the RBI’s policy update, enabling borrowers to benefit from the lower benchmark rate.
INDIAN BANK
Indian Bank has decreased its repo-linked lending rate from 8.20% to 7.95%, effective from December 6, 2025.
These new rates will be applicable across its loan offerings, assisting borrowers with floating-rate loans.
BANK OF MAHARASHTRA
Bank of Maharashtra has reduced its home loan rates from 7.35% to 7.10%, resulting in more affordable EMIs for new borrowers.
The bank has also slashed its car loan rates from 7.70% to 7.45% and waived processing fees on both home and auto loans, reducing upfront costs for customers.
BANK OF BARODA
Bank of Baroda has lowered its Benchmark Retail Loan Lending Rate (BRLLR) from 8.15% to 7.90%.
This reduction provides direct but slight relief to customers repaying retail loans linked to this benchmark.
Implications for Borrowers
With multiple banks reducing their lending rates, home loan customers can expect a decrease in their EMIs soon. Depending on the loan terms, some borrowers may also experience a shorter loan repayment period.
New borrowers are set to benefit from more competitive lending rates across home and auto loans.
As more lenders are anticipated to follow suit, borrowers