Good News! These Four Banks Cut Interest Rates After RBI’s Repo Rate Slash
After RBI reduces the Repo rate, four major banks Bank of Baroda (BOB), HDFC Bank, Punjab National Bank (PNB), and UCO Bank, have reduced their interest rates. This new interest rate is set to lower EMIs on home, auto, and personal loans, which a relief to consumers.
Bank of Baroda Reduces RRLR by 50 Basis Points
Bank of Baroda has passed on the full benefit of the RBI’s repo rate cut to its customers. The Repo Rate Linked Lending Rate (RRLR) has been reduced by 50 basis points, bringing it down to 8.15%. This reduction became effective from June 7, 2025, and will directly impact loans linked to the repo rate, means lower EMIs for borrowers.
HDFC Bank Lowers MCLR Across Tenures
HDFC Bank has adjusted its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points. The revised rates are as follows:
- 1-month loan: 8.90%
- 3-month loan: 8.95%
- 6-month and 1-year loan: 9.05%
- 2-year and 3-year loans: 9.10% (down from 9.20%)
This revision also took effect from June 7, 2025, that means it will now benefit both new and existing borrowers under the MCLR regime.
PNB and UCO Bank Join the Rate Cut
A Major Public Sector Bank, Punjab National Bank (PNB) has also reduced its RRLR by 50 basis points, bringing it down from 8.85% to 8.35%. But, the bank has kept its base rate and MCLR unchanged.
UCO Bank has also reduced MCLR across all loan terms by 10 basis points:
- 1-month MCLR: 8.35%
- 3-month MCLR: 8.50%
- 6-month and 1-year MCLR: 8.80% and 9.00%, respectively
These changes from PNB and UCO Bank will come into effect from June 10, 2025.
Why Interest Rate cut in EMI?
RBI had recently cut the repo rate by 50 basis points, bringing it down to 5.50%. This was the third repo rate cut in 2025 by RBI.
Plus, RBI has also reduced the Cash Reserve Ratio (CRR) by 100 basis points, which increased liquidity available with banks..
