RBI: After the Reserve Bank of India (RBI) recently lowered the repo rate by 25 basis points, or 0.25%, many major public sector banks have also cut their loan interest rates.
This is the second time this year that the RBI has reduced the repo rate.
Following this move, State Bank of India (SBI), Punjab National Bank (PNB), Indian Bank, and Bank of India have all revised their External Benchmark-Linked Lending Rate (EBLR) or RLLR.
How does this help loan customers?
When the repo rate goes down, it directly helps people with floating interest rate loans. Since most banks now link retail loans to the repo rate, any change by RBI affects EMIs quickly.
Lower interest rates mean lower monthly payments, giving customers some financial relief.
What is RLLR?
RLLR, or Repo-Linked Lending Rate, is the rate banks use when giving loans to customers.
As per an RBI rule from October 2019, all retail loans must be linked to an external benchmark. Most banks have chosen the repo rate as that benchmark.
Interest rate cuts by major banks
SBI: The country’s largest public bank, SBI, has lowered its EBLR from 8.90% to 8.65%. The new rate applies from April 15, 2025.
PNB: PNB has also reduced its RLLR from 8.90% to 8.65%. The bank’s spread (0.20%) remains the same, so the final interest rate for customers is now 8.85%, down from 9.10%.
Indian Bank: Indian Bank has cut its RBLR from 9.05% to 8.70%. These new rates started on April 11, 2025, and will stay until the next revision.
Bank of India: Bank of India has brought down its RBLR from 9.10% to 8.85%. This change has been in effect since April 9, 2025.
