SBI, UBI, PNB to BoM: Four banks make home loans cheaper after RBI repo rate cut

As many as four government-owned banks have reduced their home loan interest rates after the repo rate cut announcement by the Reserve Bank of India (RBI) early this month.

These banks are the State Bank of India (SBI), Punjab National Bank (PNB), Union Bank of India (UBI) and Bank of Maharashtra (BoM).

Bank of Maharashtra home loan

The Bank of Maharashtra (BoM) has cut home loan interest rates by 25 basis points following the repo rate reduction by RBI.

In a statement recently, the Bank of Maharashtra said its benchmark rate for home loans has now reduced to 8.10%, which is one of the lowest in the banking industry.

According to the bank's website, it is now offering repo-rate linked home loans starting at 8.10% interest. The highest interest rate charged by the bank on floating-rate loans is 10.65% (applicable to non-salaried borrowers). For salaried borrowers, the highest rate charged by this bank is 10.15%.

The BoM has also waived processing fees on home and car loans.

Union Bank of India home loan

Union Bank of India has also revised its interest rates on housing loans with effect from February 11, 2025. According to the bank's website, it is now offering floating-rate home loans starting at 8.1%. The highest rate charged by the bank on home loans is 10.50%.

Punjab National Bank home loan

Punjab National Bank (PNB) has revised interest rates for its home loans with effect from February 10. The bank offers various home loan schemes with interest rates starting at 8.15% per annum.

SBI home loan

The RBI reduced the repo rate after a gap of 5 years by 25 basis points to 6.25% on February 7, 2025. The repo rate is the rate at which banks borrow from the RBI.