Home loan EMIs continue to fall: 7 banks cut home loan interest rates after RBI cut repo rate in June
2. SBI home loan rates
3. Union Bank of India home loan rates
4. Canara Bank home loan rates
5. Punjab National Bank (PNB) home loan rates
Bank Old Rate New Rate Effective Date Indian Overseas Bank 8.85% 8.35% 12-Jun-25 State Bank of India 8.25% + CRP 7.75% + CRP 15-Jun-25 Union Bank of India 8.75% (approx.) 8.25% (approx.) Jun-25 Canara Bank 8.75% 8.25% 12-Jun-25 Punjab National Bank 8.85% 8.35% 9-Jun-25 Bank of Baroda 8.65% 8.15% 7-Jun-25 Bank of India 8.85% 8.35% 6-Jun-25
Several major banks have reduced their External Benchmark Lending Rates (EBLR) or Repo Linked Lending Rates (RLLR) following the Reserve Bank of India 's 50 basis point (0.50%) repo rate cut in June 2025. This translates into lower home loan interest rates for borrowers who have taken or are planning to take floating rate loans which are linked to repo rate.RBI's repo rate actions have a direct impact on home loan interest rates that follow Repo Linked Lending Rates (RLLR), an external benchmark linked rate which is linked to repo rate. A lower repo rate translates into a lower RLLR, which means that consumers will pay less in interest over the course of the loan term and have fewer EMIs (equivalent monthly installments) if they continue to pay existing EMIs despite a rate cut. If borrowers want to go lower EMIs then they can keep the tenure same and pay a lower EMI. However, borrowers should note that lower EMI will be applicable only on the reset date of the loan tenure which is usually once in three months.Also read: Public vs private banks: Which of these offers the cheapest home loans now after RBI's 50 bps repo rate cut? Here are banks that have cut their Repo-linked lending rate after the RBI rate cut in June.Indian Overseas Bank has announced the reduction of Repo Linked Lending Rate (RLLR) by 50 basis points from 8.85% to 8.35%, effective from June 12, 2025.The State Bank of India (SBI) has revised its Repo Linked Lending Rate (RLLR) with effect from June 15, 2025, in response to the RBI's recent 50 basis point (0.50%) cut in the repo rate. The latest RLLR: 7.75% + Credit Risk Premium (CRP), according to the SBI website.Earlier RLLR: 8.25% + Credit Risk Premium (CRP).The Union Bank of India has reduced both the External Benchmark Lending Rate (EBLR) and the Repo Linked Lending Rate (RLLR) by 50 basis points, bringing its EBLR down to 8.25% (comprising the new repo rate of 5.50% plus a spread of 2.75%).According to a press release from the bank, 'Following the Reserve Bank of India's reduction in the policy repo rate by 50 basis points, Union Bank of India has revised its key lending rates w.e.f. 11.06.2025. These changes include downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points. With this move, Union Bank of India has completely aligned its EBLR and RLLR with the recent RBI rate cut which will be beneficial to new and existing Retail (Home, Vehicle, Personal, etc.) and MSME borrowers.'Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25% for loans tied to the External Benchmark rate. This decision follows the Reserve Bank of India's recent 50 basis point cut in the repo rate from 6.00% to 5.50%, announced during the latest Monetary Policy Committee (MPC) meeting. The revised lending rate will come into effect from June 12, 2025. This move will lower borrowing costs for customers with loans linked to RLLR.In a regulatory filing, PNB announced that it has revised its Repo Linked Lending Rate (RLLR) from 8.85% to 8.35%, effective June 9, 2025. The new rate reflects the 50 basis point cut in the repo rate and includes a Bank Spread of 20 basis points.'The Exchange is hereby informed that consequent upon the decrease in Repo rate by RBI on 06.06.2025, the Bank has revised RLLR from 8.85% (including BSP of 20bps) to 8.35% (including BSP of 20bps) with effect from 09.06.2025,' PNB stated in its filing.Bank of Baroda, in compliance with SEBI's disclosure norms, informed the exchanges that it has reduced its Baroda Repo Based Lending Rate (BRLLR) from 8.65% to 8.15%, effective June 7, 2025. This is also a 50 basis point reduction, in line with the RBI's move.'Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that BRLLR has been revised from 8.65% to 8.15% with effect from 07.06.2025,' the bank said.Bank of India has also joined the rate-cut bandwagon, reducing its Repo Based Lending Rate (RBLR) from 8.85% to 8.35%, effective June 6, 2025.The bank in a BSE announcement stated, 'Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Repo Based Lending Rate (RBLR) has been changed w.e.f. 06.06.2025. 2. Today, RBI has revised the Repo Rate from 6.00% to 5.50% (decrease of 50 bps).The change in RBLR is as under. The effective RBLR is revised from 8.85% to 8.35%, down by 50 bps.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
42 minutes ago
- Mint
RBI governor says inflation, growth equally important to decide future rate cuts
Mumbai: The future rate decisions of the central bank's Monetary Policy Committee could go either way, depending on the inflation outlook and economic growth, said governor Sanjay Malhotra, citing the regulator's 'neutral' policy stance. Lower inflation and a slowdown in growth can both be equally important catalysts for potential rate cuts, the Reserve Bank of India governor said in an interview with CNBC TV18 on Tuesday. RBI cut the benchmark repo rate by 25 basis points each in February and April, followed by a 50-bps cut in June, leading to a 100 basis point (or 1 percentage point) drop in rates within five months. Banks borrow from the central bank at the repo rate. Economists at Nomura expect 25 bps cuts in each of the October and December meetings to a terminal rate of 5%. Retail inflation came in at 2.1% in June, the slowest pace since January 2019 and down from 2.82% in May and 3.16% in April. Inflation measured by the consumer price index (CPI) is projected at 3.7% in FY26, according to the RBI's June monetary policy statement. On Tuesday, Malhotra said the RBI's core mandate is to maintain price stability, and it looks at growth as well. If the inflation outlook remains benign or growth shows signs of slowing, policy rate cuts could be considered, he said. However, such a decision would be based on the outlook rather than Q1 data, according to the RBI governor. 'We won't weigh inflation above growth,' said Malhotra. 'Both are equally important, and the composition of inflation, like base effects and food prices, also matters.' The economy expanded 6.5% in FY25, the slowest pace in four years, data released at the end of May showed. While announcing the monetary policy decision on 6 June, Malhotra acknowledged that gross domestic product growth remains lower than aspirations, but the central bank retained its forecast at 6.5% for FY26. In June, RBI changed its stance from accommodative to neutral. A neutral stance would mean that the RBI would lean on incoming data to decide which way the rate should swing. The change in stance had surprised many, especially because the six-member Monetary Policy Committee (MPC) changed it to accommodative from neutral only two months ago. Citing the 100 bps reduction in the policy rate since February, Malhotra had then said that'under the current circumstances, monetary policy is left with very limited space to support growth'. However, he had added that if growth is weaker, it can mean that rates will go down. 'If the growth is good, inflation is going up, it can mean that the repo rate, policy rate can go up. So, it will depend on how the data, both on inflation as well as growth, turns out.'
Time of India
43 minutes ago
- Time of India
Trump tariff war: Deal or no deal - why it won't matter much for India
SBI Research has said that India will be able to diversify its export horizons to counter any negative impact of a less than favourable deal with the US. India-US trade deal: As 'fast-paced' talks between India and the US on an interim trade deal continue, the tariff rate that the Donald Trump administration will finally choose to impose on India is the biggest focus point. In April this year, Trump had announced a 26% reciprocal tariff rate on India. He later suspended tariffs for all countries to 10%, giving them room to negotiate a trade deal. The latest deadline for tariffs is now August 1, 2025. So where does India stand in the trade war that Trump has unleashed globally? What tariff rate would be advantageous to India? And, importantly if the tariff rate is not less than or near 20%, will India really be at a major disadvantage? In its latest report SBI Research has said that India will be able to diversify its export horizons to counter any negative impact of a less than favourable deal with the US. Deal Or No Deal - India Has Enough Room & Comparative Advantage 'We believe that even if the India-US deal doesn't come up as desired and 10% additional tariffs are imposed on India, there are various avenues for India to diversify its exports,' SBI Research has said in its report. The report also highlights an important point: India's service exports continue to achieve unprecedented levels, projected to reach $387.5 billion in 2024-25, primarily supported by robust performance in IT, financial and business services sectors, suggesting minimal impact on overall export figures. The United States has imposed tariffs on over 20 countries, with Asian countries seeing steeper tariff rates compared to India. This situation creates export possibilities for India to enhance its shipments to the US, particularly in sectors where it possesses revealed comparative advantage, the SBI report says. Following its trade agreement with the US, Vietnam now faces a reduced tariff rate of 20%. The extent to which India can negotiate similar tariff reductions with the US remains uncertain. Scope in Chemicals & Pharma Exports: SBI's analysis indicates that out of the top five US imports, India currently has a relative advantage only in chemicals. China and Singapore currently maintain larger export shares to the US market in this category. But, with China now subject to high tariffs, India has the potential to expand its chemical and pharmaceutical exports to the United States, the report says. Should India manage to seal a trade deal with tariff reductions below 25% (currently applicable to Singapore), it could gain a portion of the market share. 'If India can capture 2% share from these countries in Chemicals exports, then it can add 0.2% to its GDP. Another 1% share can be seized from Japan, Malaysia and South Korea which now face higher tariff than India, thereby adding 0.1% to its GDP,' the SBI report adds. Apparel Exports: There exists potential to gain market share in apparel exports from Bangladesh, Cambodia and Indonesia. India presently holds 6% of US apparel imports, and securing an additional 5% from these nations could contribute 0.1% to GDP. Looking Beyond US: India is currently reviewing the ASEAN-India Free Trade Agreement to address tariff irregularities and strengthen the "rules of origin" provisions, which have enabled substantial Chinese imports through ASEAN nations. ASEAN is a major trading partner for India, with bilateral trade reaching $123 billion in 2024-25. The share of ASEAN in India's exports has reduced over the years, while the share of imports has remained stable. India can enhance its exports to ASEAN and prevent dumping of goods from China through ASEAN countries, says SBI Research. Furthermore, opportunities exist to enhance exports to Asian nations currently facing elevated US tariffs. India could increase its shipments of Chemicals, Agricultural goods, Livestock & its products, Waste and Scrap (particularly metal scrap) and specific Animal and Vegetable Processed Products to these markets. Donald Trump's Tariff Letters Since last week, Trump has been on a letter sending mission, with tariff updates sent to over 20 countries. India has so far not received any letter from the US President, possibly due to his own admission that the two countries are nearing a trade deal. Whilst 17 countries have received reduced tariffs compared to the April 2 announcement, six nations - Brazil, Canada, Japan, Brunei, Philippines and Malaysia - face increased tariff impositions. India-US Trade Deal: Where Do Things Stand? 'The final call on the India-US trade deal will be in the coming days, with the mini trade deal likely to be announced by mid-July. As per the latest information, India has already presented a final 'decent offer' from its side, which will be reviewed by those calling the shots at the Capitol. Basis indications, India's proposal covers goods trade worth around $150 billion to $200 billion between the two countries,' says the report. Last week while talking about sending tariff letters, Trump said, "We've spoken to everybody. ...it's all done. I told you we'll make some deals, but for the most part, we're going to send a letter…Now we've made a deal with United Kingdom. We've made a deal with China. We're close to making a deal with India.' Even as India has firmly said that it does not believe in working on 'deadlines' for trade agreements, a team of Commerce Ministry officials are currently in the US for another phase of negotiations. Commerce Minister Piyush Goyal has said that talks on a trade deal between India and the US are progressing at a 'fast pace'. India has hardened its stance on agriculture and dairy products and reports suggest that these two points of contention are likely to be left out of the interim trade deal. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
EximPe secures in-principle nod for cross-border payment aggregator licence
Cross-border payments startup EximPe announced on Tuesday that it has secured the Reserve Bank of India's (RBI) in-principle approval for a Payment Aggregator Cross-Border (PA-CB) licence (Export and Import). The company plans to offer cross-border pay-ins and pay-outs for digital services, e-commerce, and business-to-business (B2B) goods trade for entities across emerging Asian markets. Currently, companies such as Skydo, BriskPe, PayPal, and Wise have been granted in-principle approval by the banking regulator. Seven other companies have their PA-CB applications under review by the RBI. As of now, only six companies—Adyen India, Amazon Pay India, Cashfree Payments, BillDesk, Pay10, and Worldline ePayments India—have received full licences from the RBI to operate as PA-CBs. 'With this licence, EximPe is uniquely positioned to support businesses expanding in the highest growth global corridor between India and Asia, while simplifying complex regulatory and financial requirements. With the PA-CB licence, we want to expand our business by 10X by the end of FY 2026,' said Arjun Zacharia, Chief Executive Officer (CEO) and Founder of EximPe. The company claims to have processed over $450 million in transactions and serves more than 5,000 small and medium-sized enterprises (SMEs), manufacturers, and service providers. EximPe said it aims to further strengthen its position as a leading cross-border payment infrastructure provider by expanding its capabilities with the new licence. The firm has raised $3.5 million in equity funding to date, according to data from market intelligence platform Tracxn.
