SBI to HDFC Bank: 8 banks cut home loan rates after RBI's repo rate decision in December

After the Reserve Bank of India (RBI), headed by Governor Sanjay Malhotra, lowered the repo rate by 25 basis points (bps) to 5.25% in the December MPC meeting, several banks have announced cuts in their home loan interest rates.

On December 5, the RBI Monetary Policy Committee (MPC) announced the fourth repo rate reduction for 2025, bringing the total cut to 1.25% for the current calendar year. The MPC also decided to keep the monetary policy unchanged, maintaining the neutral stance, which means more rate cuts are possible in the future.

State Bank of India

Recently, on December 13, the State Bank of India (SBI) cut its lending rates by up to 25 bps effective December 15, passing the benefit of the RBI rate cut to its customers.

The public sector bank has cut its interest rates across lending rate benchmarks: Marginal Cost of Funds based Lending Rate (MCLR), External Benchmark-linked Lending Rate (EBLR), Repo-linked Lending Rate (RLLR) and Benchmark Prime Lending Rate (BPLR).

Bank of Maharashtra

Bank of Maharashtra has cut its lending rates by 25 bps, lowering them from 7.35% to 7.10% (RLLR). The revised rates came into effect from December 6.

The bank’s home loan starts from 7.10% and car loan starts from 7.45%, which is among the lowest in the banking industry, the bank said in a statement.

"This benefit of reduced interest rates reflects the bank's commitment to offer best financing solutions to all its customers and help them fulfil their dreams. In the current high-interest rate landscape, the bank is making retail loans cheaper to bring in cheer among customers," it said.

Punjab National Bank

This public sector undertaking (PSU) cut its lending rates just after the RBI announced the repo rate cut. PNB announced its revised rates on December 6, lowering its RLLR (Repo Linked Lending Rate) to 8.10% from 8.35% before. However, the bank kept its MCLR and base rate unchanged.

HDFC Bank

India’s largest private sector bank, HDFC Bank, cut its lending rates by up to 5 bps after the repo rate cut announcement. It now offers MCLR ranging from 8.30% to 8.55%, depending on the tenure. Earlier, its MCLR ranged between 8.35% to 8.60%.

Bank of India

Effective December 5, Bank of India revised its RLLR to 8.10%, down from 8.35% before. The bank’s MCLR and other rates remained unchanged.

Indian Bank

Indian Bank has reduced its RLLR to 7.95% from 8.20% before, with effect from December 6. The revised rate will remain in force until the next review, the bank said in an exchange filing.

Bank of Baroda

Bank of Baroda cut its Baroda Repo Based Lending Rate (BRLLR) to 7.90% from 8.15% before effective December 6, it said in a regulatory filing after the repo rate cut announcement. Its markup component (2.65%) and other rates remain unchanged.

Indian Overseas Bank

Indian Overseas Bank (IOB) has also reduced its lending rates by up to 25 bps. The revised rates will come into effect on December 15.

The bank has reduced its repo-linked lending rate (RLLR) to 8.10% from 8.35% before, passing the full benefit of the repo rate cut to customers. It has also cut the MCLR by 5 bps across tenures from three months to three years.