Following the Reserve Bank of India’s (RBI) 0.25% cut in the repo rate, Indian Bank has reduced its repo-linked prime lending rate (RBLR) from 8.2% to 7.95%. The bank announced that these new rates are effective from December 6.
This 0.25% reduction in RBLR will make loans cheaper for customers, especially those taking home loans, business loans, and other RBLR-linked loans.
Indian Bank has also lowered its one-year Marginal Cost of Funds-Based Lending Rate (MCLR) by 0.05%, bringing it down to 8.8%, effective from December 3.
Bank of India and Bank of Baroda Also Reduce Loan Rates
Two other public sector banks—Bank of India and Bank of Baroda—have also cut their lending interest rates.
Bank of India reduced its RBLR by 0.25% (25 basis points) to 8.1%, with the new rates effective from December 5. The bank said this change follows the RBI’s recent repo rate cut announced in its monetary policy.
Similarly, Bank of Baroda cut its RBLR from 8.15% to 7.90%, effective from December 6.
RBI Has Cut Repo Rate by 1.25% This Year
Overall, the RBI has reduced the repo rate by a total of 1.25% in 2024, making cuts four times during the year.
February: 0.25% cut
April: 0.25% cut
June: 0.50% cut
December: 0.25% cut
There were no changes in August and October. With the latest reduction, the repo rate now stands at 5.25%.