Home Loans to Get Cheaper! PNB, Indian Bank and Bank of India Cut Lending Rates; Check Latest Interest Rates

State-owned Punjab National Bank (PNB) on Saturday, announced a reduction in its Repo Linked Lending Rate (RLLR) following the Reserve Bank of India's policy decision a day earlier. After the RBI cut the benchmark repo rate by 25 basis points to 5.25% on December 5, PNB revised its RLLR from 8.35% (including a 10 basis point BSP) to 8.10% (including a 10 basis point BSP).

PNB Cuts Home Loan Rates From December 6: Check New Interest Rates

The revised rates came into effect immediately from December 6. The bank clarified that its Marginal Cost of Lending Rate (MCLR) and Base Rate remain unchanged despite the revision.

Indian Bank, Bank of India Revise Lending Rates

Along with PNB, several public-sector lenders have also adjusted their interest rates in response to the RBI's latest monetary policy move. Indian Bank reduced its repo-linked benchmark lending rate from 8.20% to 7.95%, with the new rates effective from December 6.

The bank stated that the reduction would ease the cost burden on customers, particularly for long-tenure loans such as home loans, by lowering monthly instalments. "The revised rate is effective from December 6, 2025, till the next review," Indian Bank said in an exchange filing.

Bank of India also trimmed its Repo-Based Lending Rate (RBLR) by 25 basis points to 8.10%, aligning with the RBI's policy rate cut. The new lending rate came into effect from December 5. In its statement, the bank noted that the revision was a direct result of the reduction in the repo rate announced by the RBI's monetary policy committee (MPC).

The RBI's six-member MPC, led by Governor Sanjay Malhotra, delivered a unanimous decision to cut the repo rate to 5.25% while maintaining a neutral policy stance. The move, marking the fourth rate reduction of 2025, is expected to support economic activity and pave the way for further easing in the months ahead.

"It's a very welcome move by the RBI and will significantly improve home purchase affordability. For affordable HFC s like us, a faster transmission of the repo rate cuts leading to reduced MCLR for banks will help us bring down our borrowing costs, thereby benefiting our lower income group customers," Mr. Sukesh Bhowal, MD & CEO, Motilal Oswal Home Finance Ltd on the RBI MPC Announcement.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.