Cheapest home loan interest rates after RBI repo rate cut: 6 banks charging 8% or less in June 2025

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has reduced the repo rate by 50 basis points (bps) or 0.5% to 5.5%. With this, the central bank has reduced the policy rate by 100 bps (1%) in quick succession since February 2025.

The 50 bps cut in repo rate on Friday (June 6) will further help reduce the repo-rate-linked home loan interest rates and, in turn, EMIs of borrowers.

As banks are likely to pass on the benefit of today's repo rate cut to borrowers soon, this article looks at some of the banks offering the cheapest home loan interest rates to borrowers with high credit scores.

Source: Respective bank websites as of June 6, 2025

Who can get cheapest interest rates?

Banks generally offer their cheapest home loan interest rates to borrowers having very high credit scores, generally 800 or above. The home loan rates also vary based on the employment status of a borrower. It is generally less for salaried employees compared to non-salaried self-employed individuals.

As the RBI has just cut the repo rate, banks may take around a month to adjust their existing home loan rates. It is expected that the above banks will also reduce their starting home loan interest rates by 50 bps soon. While this will benefit existing borrowers, new borrowers may wait for some time to book their home loans even at a lower rate.