6 banks cut RLLR, MCLR loan rates after RBI's repo rate move: HDFC Bank, BoB, UCO, BoI, and more

As many as six banks have reduced their benchmark lending rates after the Reserve Bank of India (RBI) cut the repo rate last week on June 6, 2025.

Bank of Baroda (BoB) has cut its benchmark lending rate linked to the repo rate by 50 basis points in line with the RBI's rate reduction. In a statement, Bank of Baroda (BoB) said that, pursuant to the RBI reducing the policy repo rate, the bank has slashed its Repo Linked Lending Rate (RLLR) by 50 basis points with effect from June 7. BoB's RLLR now starts at 8.15%.

HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by 10 basis points across tenures. This rate cut will benefit borrowers whose loans are linked to MCLR. The new MCLR rate will apply from June 7, 2025. With this rate cut, HDFC Bank is now charging. 8.9% interest on overnight and one-month rates. The bank's three-month rate has dropped to 8.95%, while the six-month and one-year rate is 9.05% now.

Further, HDFC Bank is charging 9.1% interest on both the two-year and three-year tenure lending rates.

Please note that the lending rate cut announced by HDFC Bank will apply to loans linked to the bank's MCLR only.

For repo-rate-linked loans, HDFC Bank is expected to reduce rates by 50 bps and pass on the benefits to customers from next month.

This is because in the last two repo rate cuts, HDFC Bank reduced repo-rate-linked loan rates immediately from the next month.

UCO Bank has reduced MCLR across all tenures. The revised rate will be effective from June 10, 2025. It has reduced the one-month MCLR to 8.35% and the overnight lending rate to 8.15%. further, UCO Bank has cut three-month MCLR to 8.5% and six-month MCLR to 8.8%. The bank has reduced one-year MCLR to 9%.

UCO Bank has also reduced RLLR by 50 bps to 8.3% with effect from June 9.

Bank of India has reduced RLLR by 50 basis points. The bank is now offering RLLR loans starting at 8.35%. The revised rate will be effective from June 6, 2025.

Karur Vysya Bank has reduced the MCLR-linked loan rate for six months by 10 bps to 9.8%. It has also reduced the 1-year MCLR loan by 20 bps to 9.8%. The revised rate is effective from June 7, 2025.