Several major Indian banks — including HDFC Bank, Punjab National Bank (PNB), Indian Bank, Bank of Baroda (BoB), Bank of India (BoI) and Bank of Maharashtra — have reduced their home-loan lending rates, offering relief to borrowers.
📉 What’s Changed
- The drive comes after Reserve Bank of India (RBI) cut its repo rate from 5.50% to 5.25% on December 5, 2025.
- As a result:
- HDFC Bank cut its Marginal Cost of Funds–based Lending Rate (MCLR) by ~5 basis points across tenures, bringing it to 8.30–8.55%.
- PNB trimmed its Repo-Linked Lending Rate (RLLR) from 8.35% to 8.10%.
- Indian Bank lowered its RLLR from 8.20% to 7.95%.
- Bank of Baroda cut its Benchmark Retail Loan Lending Rate (BRLLR) from 8.15% to 7.90%.
- Bank of India reduced its Repo-Based Lending Rate (RBLR) from 8.35% to 8.10%.
- Bank of Maharashtra lowered its home-loan rate from 7.35% to 7.10%.
✅ What This Means for Borrowers
- Borrowers with floating-rate home loans (tied to MCLR, RLLR/RBLR, etc.) are likely to see a reduction in their EMIs — or else enjoy a shorter loan tenure if they maintain the same EMI amount.
- For new home-loan applicants, these rate cuts make borrowing more affordable — lowering monthly payment burden and improving loan affordability.
- This move also reflects an attempt by banks to pass on the benefits of RBI’s rate cut — a signal that home-loan interest rates may be trending downward overall.
