Loan Interest Rates: The Reserve Bank of India (RBI) on Friday (June 6) announced a cut of 0.50 percent in repo rates. After this, the repo rate has come down to 5.50 percent. After the cut in the repeal rate, four banks have announced a reduction in rates. These include three government banks Punjab National Bank (PNB), UCO Bank, and Bank of India.

Government bank Uco Bank has cut its marginal cost of funds-based lending rate (MCLR) by 10 basis points for all tenures from June 10, 2025. This means that MCLR-linked loans such as home loans, and personal loans can be cheaper for customers.

UCO Bank has reduced the overnight MCLR rate by 0.10% to 8.15%, which was earlier at 8.25%. MCLR for 1 month has now become 8.35%, which was earlier at 8.45%. MCLR for 3 months tenure will now be 8.50%, which was earlier at 8.60%. While MCLR for 6 months will now be 8.80%, which was earlier at 8.90%. While MCLR for one year will come down from 9.10% to 9%.

State-run bank Punjab National Bank has cut the Repo Linked Lending Rates (RLLR) after RBI's cut in repo and reduced the rates from 8.85% to 8.35%. According to the bank, no change has been made in MCLR and base rates. The new rates will be effective from June 9, 2025.

At the same time, Bank of India has made changes in the Repo Based Landing Rates (RBLR) from June 6 along with the cut in the repo rate. After the cut, the RBLR has been reduced from 8.85% to 8.35%.

Private sector Karur Vysya Bank has cut the MCLR. According to the information given by the bank, 6-month MCLR and 12-month MCLR have been cut. 6-month MCLR has been reduced from 9.9% to 9.8%. At the same time, the one-year MCLR has been reduced from 10% to 9.8%. The new rates will be effective from June 7.

RBI reduced the repo rate by 0.5% more than expected to 5.5%. With this cut, RBI has cut the repo rate by a total of 1% since February this year. In the monetary policy review of February and April this year, the repo rate was cut by 0.25-0.25%. RBI made the first cut after May 2020 in February.