Several significant public and private sector banks have announced reductions in their lending rates across a range of retail loan segments, in line with the Reserve Bank of India‘s recent 25 basis point reduction in the repo rate on April 9. This year, this is the second straight rate drop as the central bank had reduced the repo rate by 25 bps in February also. To help consumers benefit from a softer interest rate environment, major lenders like SBI, Bank of Baroda, PNB, Bank of India, Bank of Maharashtra and Indian Bank have also revised their repo linked lending rate.
Here is the list of prominent banks that have reduced their home loan interest rates.
State Bank of India lending rate
The State Bank of India, the country’s largest public sector bank, has also slashed its lending rates by up to 0.25%. Effective April 15, 2025, the bank’s EBLR (External Benchmark Based Lending Rate), which currently stands at 8.90%, has been revised to 8.65%. The bank’s RLLR is now 8.25+Credit Risk Premium (CRP) from 8.50+CRP.
Home loan interest rates are falling: Check the latest home loan rates offered by SBI, HDFC Bank, ICICI Bank, PNB, Canara Bank
Bank of Baroda
For retail loans, the applicable Bank of Baroda RLLR is 8.65% with effect from April 10, 2025 (Current RBI Repo Rate: 6.00% + Mark-up/Base Spread: 2.65%).
Bank of Maharashtra
Bank of Maharashtra (BoM) has announced reduction in lending rate linked to repo rate by 25 basis points in line with the Reserve Bank’s key policy rate. The bank’s repo-linked lending rate (RLLR) has now been reduced from 9.05% to 8.80%.
HDFC Bank lending rate
HDFC Bank has reduced loan interest rate will reduce by 0.25% (0.50% since February) starting from your next interest reset date. Standard home loan rates for salaried and self-employed individuals range from 8.70% to 9.55%, while special rates for the same category range between 8.50% to 9.35% as on May 2, 2025.
Indian Overseas Bank (IOB)
Indian Overseas Bank cut its benchmark lending rate in line with repo rate reduction from 6.25% to 6%. The bank has decided to pass on the rate cut to the customers by reducing the RLLR of the bank by 25 basis points from 9.10% to 8.85%, IOB said in a statement.
Punjab National bank
Punjab national bank has also cut RLLR from 8.90% to 8.65%. The Bank Spread (BSP) — a fixed margin charged over the RLLR — remains unchanged at 0.20%. As a result, the final lending rate offered to customers has come down from 9.10% to 8.85%.
ICICI Bank lending rates
For individuals with a credit score of 800, the home loan interest rate is 9.00% for both salaried and self-employed applicants. For those with a credit score between 750 and 800, the interest rate is 9.00% for salaried individuals and 9.10% for self-employed borrowers.
Indian Bank
Indian Bank has revised its lending rates following RBI’s 25 basis points reduction in the repo rate. The bank has lowered its repo benchmark rate from 6.25% to 6%; consequently, the repo-linked benchmark lending rate (RBLR) has been reduced from 9.05% to 8.7%. As per the bank’s BSE filing, these revised rates will take effect on April 11, 2025, and will be applicable to all repo-linked loans until the subsequent review.
Bank of India
Bank of India has also reduced its lending rates in line with RBI’s 25 basis points repo rate cut. The bank has brought down its repo-linked benchmark lending rate (RBLR) from 9.1% to 8.85%, with the revised rate effective from April 9, 2025.
According to Bank of India’s BSE filing, “Effective RBLR from 9.1% to 8.85%, a decrease of 25 bps. The new rates are effective from April 9, 2025.”
