PNB and 4 Other Banks Cut Loan Interest Rates After RBI Repo Rate Reduction – Check Latest Rates
New Delhi: The Reserve Bank of India (RBI) recently announced a 50 basis points (0.50%) cut in the repo rate on Friday, June 6. With this, the repo rate has been reduced from 6% to 5.5%. Following this move, several banks have started slashing interest rates on loans, offering much-needed relief to borrowers.
In response to RBI’s decision, five banks including Punjab National Bank (PNB) have announced a reduction in their lending rates. Within hours of the repo rate cut, public sector lender PNB announced a 0.50% reduction in its lending rates, which will benefit both existing borrowers by lowering EMIs and new borrowers with cheaper loan options.
PNB’s New Rates Effective from June 9
PNB shared the update on social media platform X, stating,
“Great news for our valued customers. Punjab National Bank has made your EMI more affordable. Following the repo rate cut (from 6.00% to 5.50%), PNB has reduced the Repo Linked Lending Rate (RLLR) by 0.50%, effective from June 9, 2025.”
Which PNB Loans Will Get Cheaper?
Home loans will now start from 7.45%
Auto loans will start from 7.8%
Bank of India Also Offers Relief
Another public sector bank, Bank of India, has reduced its Repo Based Lending Rate (RBLR) from 8.85% to 8.35%, effective June 6.
Karur Vysya Bank Cuts MCLR
Private sector lender Karur Vysya Bank has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR):
6-month MCLR: from 9.9% to 9.8%
1-year MCLR: from 10% to 9.8%
Indian Bank Reduces Lending Rates
Indian Bank has announced a reduction in its Repo Linked Benchmark Lending Rate from 8.7% to 8.2%. The new rates will be effective from June 9, 2025.
UCO Bank Also Eases Loan Rates
UCO Bank has reduced its MCLR across all tenures by 0.10%, effective June 10, 2025. Loans linked to MCLR will now become cheaper for borrowers.
This collective move by banks following RBI’s rate cut is expected to boost loan demand and ease the financial burden on borrowers.
