Good news for borrowers! Several major banks, including Canara Bank, SBI, Punjab National Bank (PNB), Indian Overseas Bank (IOB), and Bank of Maharashtra, have reduced their loan interest rates.
This follows the Reserve Bank of India (RBI) cutting the repo rate by 0.25%, from 5.50% to 5.25% earlier this month.
As a result, banks have lowered their repo-linked lending rates (RLLR) and external benchmark rates, helping customers pay lower EMIs.
Bank-Wise Interest Rate Reductions
Canara Bank: RLLR reduced from 8.25% to 8% (effective Dec 12, 2025). Existing customers will see lower EMIs.
PNB: RLLR reduced from 8.35% to 8.10% (effective Dec 6, 2025).
IOB: RLLR revised to 8.10%, with one-year MCLR at 8.80% and three-year MCLR at 8.85% (effective Dec 15, 2025).
SBI: EBLR reduced from 8.15% + CRP to 7.90% + CRP, and RLLR reduced from 7.75% + CRP to 7.50% + CRP (effective Dec 15, 2025).
Bank of Baroda: BRLLR reduced from 8.15% to 7.90% (effective Dec 6, 2025).
Indian Bank: RLLR reduced from 8.20% to 7.95% (effective Dec 6, 2025).
Bank of India: RBLR reduced from 8.35% to 8.10% (effective Dec 5, 2025).
Bank of Maharashtra: Home loan rates cut from 7.35% to 7.10% and car loans from 7.70% to 7.45%, with processing fees waived.
How Customers Benefit
These rate cuts mean lower EMIs for borrowers, making loan repayments easier and reducing monthly financial stress.
Whether you have a home loan, car loan, or personal loan, these reductions can help save money.
For new borrowers, it’s an opportunity to take loans at cheaper interest rates.
The RBI’s repo rate cut directly affects banks’ lending rates, so such reductions are expected to continue benefiting customers in the coming months.
