Good news for borrowers! Several major banks, including Canara Bank, SBI, PNB, Indian Overseas Bank, Bank of Baroda, Indian Bank, Bank of India, and Bank of Maharashtra, have announced reductions in their loan interest rates.
This comes shortly after the Reserve Bank of India (RBI) cut the repo rate by 0.25%, bringing it down from 5.50% to 5.25% in December 2025.
Following this, banks have lowered their repo-linked lending rates (RLLR) and external benchmark lending rates (EBLR), which will help borrowers save on EMIs.
How Much Are Interest Rates Reduced?
Here’s a quick look at the latest rate cuts:
Canara Bank: RLLR reduced from 8.25% to 8% (effective Dec 12, 2025)
Punjab National Bank (PNB): RLLR reduced from 8.35% to 8.10% (effective Dec 6, 2025)
Indian Overseas Bank (IOB): RLLR now 8.10%; one-year MCLR 8.80%, three-year MCLR 8.85% (effective Dec 15, 2025)
State Bank of India (SBI):
EBLR reduced from 8.15% + CRP/BSP to 7.90% + CRP/BSP
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 reduced from 7.35% to 7.10%
Car loan rates reduced from 7.70% to 7.45%
Processing fees waived on new loans
Benefits for Borrowers
These interest rate cuts are good news for anyone with a loan or planning to take one.
Lower repo-linked rates mean:
Reduced EMIs for existing borrowers
Lower monthly expenses
Easier repayment for home, car, and personal loans
This move directly reflects the RBI’s repo rate cut and will benefit customers across the country, making loans more affordable.
