Home loan relief: Banks cut MCLR, RLLR and RBLR after RBI repo rate trim; here’s how your EMIs may fall
Home loan borrowers are set to get relief as several major banks have started cutting lending rates after the Reserve Bank of India lowered the repo rate by 25 basis points to 5.25% on December 5, 2025. Following the repo rate cut from 5.50%, lenders have moved to reduce MCLR-, RLLR- and RBLR-linked rates, paving the way for lower equated monthly instalments (EMIs) or shorter loan tenures for eligible borrowers, depending on individual loan terms. HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points across tenures.
After the revision, HDFC Bank’s MCLR now ranges between 8.30% and 8.55%, compared with 8.35% to 8.60% earlier, benefiting borrowers with loans linked to this benchmark, according to an ET report.
Punjab National Bank has cut its Repo Linked Lending Rate (RLLR) from 8.35% to 8.10%, inclusive of a 10 basis point Benchmark Spread Premium, with effect from December 6, 2025.
In a notification to the BSE, the bank said the revision followed the RBI’s repo rate cut announced on December 5. Bank of Baroda has revised its Benchmark Retail Loan Lending Rate (BRLLR), lowering it from 8.15% to 7.90%, according to a disclosure on the BSE website, offering marginal relief on retail loan interest costs. Indian Bank has also reduced its repo-linked benchmark lending rate, cutting RLLR from 8.20% to 7.95%.
The revised rates came into force on December 6, 2025, and apply across the bank’s assets portfolio, as per an official press release. Bank of India announced a reduction in its Repo Based Lending Rate (RBLR) from 8.35% to 8.10%, effective December 5, 2025.
In a regulatory filing, the bank said the rate cut was in response to the RBI’s downward revision of the repo rate. Bank of Maharashtra has lowered its retail loan rates as well, slashing home loan interest rates from 7.35% to 7.10% and car loan rates from 7.70% to 7.45%.
The bank has also waived processing fees on these loans, reducing upfront costs for borrowers, as per a post shared on X by the lender. With multiple banks realigning lending rates after the RBI’s policy move, borrowers linked to floating-rate home and retail loans can expect EMIs to ease in the coming months as the rate cuts reset across loan benchmarks.
