Home Loan: RBI has reduced the repo rate to 5.5 percent on 7 June. Due to this, the interest rate of home loans has also been reduced. A total of up to 1 percent has been cut since February 2025. After this, banks are also offering cheaper loans to their customers. Recently five banks have reduced the interest rates of home loans. Due to this, this can be a great opportunity for those who are planning to buy a house. Know the complete details about this in the news.

If you are thinking of taking a new home loan, then this news can be very useful for you because, after the reduction in interest rates, the loan has become cheaper than before. RBI has reduced the repo rate to 5.5 percent on 7 June. A total of up to 1 percent has been cut since February 2025. After this, the bank has also offered cheap loans (Cheapest Home Loans) to its customers.

Punjab National Bank reduced interest rate-

Punjab National Bank (PNB) has reduced its Repo Linked Lending Rate (RLLR) from 8.85 percent to 8.35 percent. According to the bank, now those who take home loans from PNB are given loan facilities at an interest rate starting from 7.45 percent. That is, your EMI can now be cheaper. At the same time, a car loan is also available at the rate of 7.80 percent per annum.

These are the interest rates in the Bank of India-

Bank of India (Bank of India Loan Interest Rate) has also reduced its RLLR from 8.85 percent to 8.35 percent. This decision will provide relief to both existing and new customers.

UCO Bank reduced MCLR-

UCO Bank has reduced MCLR (UCO Bank Home Loan Interest Rate) by 10 basis points. This MCLR will be implemented from June 10. Overnight MCLR has now been reduced to 8.15 percent, one month to 8.35 percent, three months to 8.50 percent, six months to 8.80 percent, and one year to 9.00 percent.

Bank of Baroda also reduced RLLR-

Bank of Baroda has also reduced its repo-linked lending rate (RLLR) by up to 50 basis points for select loan periods. After this, the starting interest rate of home loans on the bank's website has been reduced to 8 percent. However, it is not clear whether the rates have been updated after the new cut or not.

HDFC Bank also reduced tenure-

HDFC Bank has also reduced MCLR by 10 points on all its loan tenures. Now the overnight and one-month rates are going to be 8.90 percent, three months 8.95 percent, and six months to three years rates are going to be between 9.05 percent to 9.10 percent.

This is how EMI will be reduced-

If your loan is linked to the repo rate i.e. based on RLLR, then you will get a benefit in EMI. The bank itself will reduce your EMI or the loan period i.e. tenure will be reduced. However, if the bank only reduces the tenure and you are planning to reduce the EMI, then you can request the bank for this.

If your home loan is already running, then this time you can get more benefits. After the RBI cut the repo rate by up to 0.50 percent, many government banks have reduced the interest rates. Earlier, usually, only new customers were given the benefit of low interest rates.

However, this time banks have changed the interest rates for old customers as well. Many banks also reduce the extra charge (home loan charge), called spread, levied on old home loans. This reduces your EMI further as compared to earlier. You may have taken the loan a long time ago.

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