Following the Reserve Bank of India (RBI) cutting the repo rate, public sector banks are extending relief to customers.
Indian Bank and Canara Bank have both announced reductions in interest rates on home and vehicle loans, making loans more affordable and reducing EMI payments for customers.
Indian Bank Lowers Interest Rates
Indian Bank has decreased its home loan interest rate from 8.15% to 7.90% per annum. Additionally, the interest rate on vehicle loans has been cut from 8.50% to 8.25% per annum.
The bank is also offering limited-time deals, such as discounts on processing fees and free documentation charges.
Indian Bank aims to make home and vehicle loans more affordable to help customers purchase their dream home or car.
Canara Bank Cuts Repo Linked Lending Rate (RLLR)
Canara Bank has reduced its Repo Linked Lending Rate (RLLR) by 25 basis points after the RBI’s repo rate cut.
This new RLLR, effective from April 12, 2025, means home loan rates will start at 7.90%, and vehicle loan rates will begin at 8.20% per annum.
The bank expects this reduction to lower EMIs for both new and existing customers, easing their financial burden.
Why Did the RBI Cut the Repo Rate?
The RBI recently lowered the repo rate from 6.25% to 6.00% to stimulate economic growth. This move comes as inflation softens and global uncertainties persist.
People planning to buy a home or car will directly benefit from this rate cut, as their loan interest rates will be lower.
Additionally, customers with existing loans may see a reduction in their monthly EMI payments.
