SBI, BOI, Indian Bank reduce lending rates post repo rate cut

Last week the RBI’s Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points to 6 per cent for the second consecutive policy review, taking the cumulative cut of 50 bps in the last two months. One basis point (bps) is one-hundredth of a percentage point.

The country’s largest lender State Bank of India (SBI) has reduced its Repo Linked Lending Rate (RLLR) to 8.25 per cent from 8.5 per cent. The bank has slashed its External Benchmark Based Lending Rate (EBLR) by 25 bps to 8.65 per cent from 8.9 per cent. It has also revised its interest rate on home loan to 8.25 per cent.

The new rates will come into effect from April 15, 2025, SBI said.

State-run lender Bank of India (BOI) has announced a reduction of 25 bps in its home loan interest rates, benefitting both new and existing customers. With this revision, the home loan rate stands reduced to 7.9 per cent per cent based on CIBIL score.

“This move is aimed at making home ownership more accessible and affordable, in line with the bank’s ongoing commitment to support customers in achieving their financial goals,” BOI said, adding that the revised rates come into effect from April 15, 2025.

In addition to home loans, Bank of India has also reduced interest rates by 25 bps across select existing retail loan products, including vehicle loan, personal loan, loan against property and education loan.

Chennai-headquartered Indian Bank has reduced the repo-linked benchmark lending rate (RBLR) from 9.05 per cent to 8.7 per cent applicable on its assets portfolio, effective April 11, 2025.

The bank said this reduction will lower borrowing costs for customers with loans linked to RBLR, such as home loans and business loans. Depending on their loan terms, customers may benefit from reduced or a shorter loan tenure.