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In a significant development for home loan borrowers, four leading public sector banks—Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Bank, and Bank of India (BOI)—have announced reductions in their home loan interest rates.
This move follows the Reserve Bank of India’s (RBI) recent decision to cut the repo rate by 50 basis points (bps) during its monetary policy review on June 6, 2025, bringing the repo rate down from 6.00% to 5.50%. This marks the second major repo rate cut in 2025, with the central bank having reduced it by a cumulative 100 basis points (1%) since February 2025.
The reduction in lending rates by these banks is expected to bring much-needed relief to home loan borrowers, as Equated Monthly Installments (EMIs) are likely to decrease. This step is also anticipated to boost housing demand and contribute to economic revival by encouraging more homebuyers to enter the market.
Bank officials have stated that the revised rates will be effective immediately or in the coming days, depending on the bank's internal approval process.
Borrowers are advised to check with their respective banks for the revised rates and eligibility criteria to benefit from the lower EMIs.
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