Latest news with #ExternalBenchmarkLending
Time of India
3 days ago
- Business
- Time of India
Home loan EMIs continue to fall: 7 banks cut home loan interest rates after RBI cut repo rate in June
Impact of RBI rate cut on home loan borrowers 2. SBI home loan rates 3. Union Bank of India home loan rates 4. Canara Bank home loan rates 5. Punjab National Bank (PNB) home loan rates Bank Old Rate New Rate Effective Date Indian Overseas Bank 8.85% 8.35% 12-Jun-25 State Bank of India 8.25% + CRP 7.75% + CRP 15-Jun-25 Union Bank of India 8.75% (approx.) 8.25% (approx.) Jun-25 Canara Bank 8.75% 8.25% 12-Jun-25 Punjab National Bank 8.85% 8.35% 9-Jun-25 Bank of Baroda 8.65% 8.15% 7-Jun-25 Bank of India 8.85% 8.35% 6-Jun-25 Several major banks have reduced their External Benchmark Lending Rates (EBLR) or Repo Linked Lending Rates (RLLR) following the Reserve Bank of India 's 50 basis point (0.50%) repo rate cut in June 2025. This translates into lower home loan interest rates for borrowers who have taken or are planning to take floating rate loans which are linked to repo repo rate actions have a direct impact on home loan interest rates that follow Repo Linked Lending Rates (RLLR), an external benchmark linked rate which is linked to repo rate. A lower repo rate translates into a lower RLLR, which means that consumers will pay less in interest over the course of the loan term and have fewer EMIs (equivalent monthly installments) if they continue to pay existing EMIs despite a rate cut. If borrowers want to go lower EMIs then they can keep the tenure same and pay a lower EMI. However, borrowers should note that lower EMI will be applicable only on the reset date of the loan tenure which is usually once in three read: Public vs private banks: Which of these offers the cheapest home loans now after RBI's 50 bps repo rate cut? Here are banks that have cut their Repo-linked lending rate after the RBI rate cut in Overseas Bank has announced the reduction of Repo Linked Lending Rate (RLLR) by 50 basis points from 8.85% to 8.35%, effective from June 12, State Bank of India (SBI) has revised its Repo Linked Lending Rate (RLLR) with effect from June 15, 2025, in response to the RBI's recent 50 basis point (0.50%) cut in the repo rate. The latest RLLR: 7.75% + Credit Risk Premium (CRP), according to the SBI RLLR: 8.25% + Credit Risk Premium (CRP).The Union Bank of India has reduced both the External Benchmark Lending Rate (EBLR) and the Repo Linked Lending Rate (RLLR) by 50 basis points, bringing its EBLR down to 8.25% (comprising the new repo rate of 5.50% plus a spread of 2.75%).According to a press release from the bank, 'Following the Reserve Bank of India's reduction in the policy repo rate by 50 basis points, Union Bank of India has revised its key lending rates w.e.f. 11.06.2025. These changes include downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points. With this move, Union Bank of India has completely aligned its EBLR and RLLR with the recent RBI rate cut which will be beneficial to new and existing Retail (Home, Vehicle, Personal, etc.) and MSME borrowers.'Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25% for loans tied to the External Benchmark rate. This decision follows the Reserve Bank of India's recent 50 basis point cut in the repo rate from 6.00% to 5.50%, announced during the latest Monetary Policy Committee (MPC) meeting. The revised lending rate will come into effect from June 12, 2025. This move will lower borrowing costs for customers with loans linked to a regulatory filing, PNB announced that it has revised its Repo Linked Lending Rate (RLLR) from 8.85% to 8.35%, effective June 9, 2025. The new rate reflects the 50 basis point cut in the repo rate and includes a Bank Spread of 20 basis points.'The Exchange is hereby informed that consequent upon the decrease in Repo rate by RBI on 06.06.2025, the Bank has revised RLLR from 8.85% (including BSP of 20bps) to 8.35% (including BSP of 20bps) with effect from 09.06.2025,' PNB stated in its of Baroda, in compliance with SEBI's disclosure norms, informed the exchanges that it has reduced its Baroda Repo Based Lending Rate (BRLLR) from 8.65% to 8.15%, effective June 7, 2025. This is also a 50 basis point reduction, in line with the RBI's move.'Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that BRLLR has been revised from 8.65% to 8.15% with effect from 07.06.2025,' the bank of India has also joined the rate-cut bandwagon, reducing its Repo Based Lending Rate (RBLR) from 8.85% to 8.35%, effective June 6, bank in a BSE announcement stated, 'Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Repo Based Lending Rate (RBLR) has been changed w.e.f. 06.06.2025. 2. Today, RBI has revised the Repo Rate from 6.00% to 5.50% (decrease of 50 bps).The change in RBLR is as under. The effective RBLR is revised from 8.85% to 8.35%, down by 50 bps.'
Time of India
14-06-2025
- Business
- Time of India
SBI cuts lending rates after RBI repo rate revision: Check latest interest rates
Following the RBI's repo rate cut, SBI has reduced its key lending rates by up to 0.50%, effective June 15, 2025. The External Benchmark Rate (EBR) is lowered to 8.15%. Consequently, SBI home loan interest rates now range from 7.50% to 8.45% based on the borrower's CIBIL score. Tired of too many ads? Remove Ads SBI MCLR SBI External Benchmark Rate (EBR) Tired of too many ads? Remove Ads SBI home loan rates What is CIBIL Score Tired of too many ads? Remove Ads What is the processing fee for SBI Home loans In a move aligned with the Reserve Bank of India's recent 50-basis-point cut in the repo rate, the State Bank of India (SBI) has cut its key lending rates by up to 0.50%. SBI is the country's largest public sector lender. A cut in the repo rate impacts various loan-linked benchmarks , including the External Benchmark Rate (EBR), External Benchmark Lending Rate (EBLR), and Repo Linked Lending Rate (RLLR).Here's a detailed look at SBI's latest lending, including home loan, interest rates effective June 15, Marginal Cost of Funds Based Lending Rate (MCLR) remains unchanged as on June 14, 2025. The overnight and one-month MCLR are both at 8.20%, while the three-month rate is 8.55% and the six-month rate is 8.90%. The one-year MCLR is 9.00%, with the two-year and three-year rates at 9.05% and 9.10% effect from June 15, 2025, the External Benchmark Rate (EBR) has been from 8.65%to 8.15%. The EBR is the rate on the basis of which banks determine the interest rates for various floating rate loans, including home loans and MSME loans, as mandated by the Reserve Bank of India (RBI).As per SBI website, the EBR is made up of two parts:RBI Repo Rate: 5.5%Spread (fixed by the bank): 2.65% for SBIFinal EBR = Repo Rate + Spread = 5.5% + 2.65% = 8.15%SBI home loan interest rate varies from 7.50% to 8.45% based on the CIBIL score of the borrower. SBI Home loan Maxgain OD interest rate varies between 7.75% and 8.70%. For a top up home loan, the interest rate varies between 8% and 10.50%. These rates are effective from June 15, that all home loans from SBI are linked to the External Benchmark Lending Rate (EBLR) and the prevailing EBLR is 8.15%. Interest rates for different individuals also vary depending on their CIBIL score, loan tenure and amount among other Credit Information Bureau (India) Limited (CIBIL) is the most popular of the four credit information companies licensed by the Reserve Bank of India. There are three other companies also licensed by the RBI to function as credit information companies. They are Experian, Equifax and Score is a 3-digit numeric summary of your credit history, rating and report, and ranges from 300 to 900. The closer your score is to 900, the better your credit rating charges a processing fee of 0.35% of the home loan amount (plus applicable GST), subject to a minimum of Rs 2,000 and a maximum of Rs 10,000 (both excluding GST).
The Hindu
11-06-2025
- Business
- The Hindu
Union Bank of India cuts lending rates
Following the Reserve Bank of India's (RBI's) decision to reduce policy repo rate by 50 basis points, Union Bank of India has revised its key lending rates with effect from June 11. These changes include downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points. 'With this move, Union Bank of India has completely aligned its EBLR and RLLR with the recent RBI rate cut which will be beneficial to new and existing Retail (Home, Vehicle, Personal, etc.) and MSME borrowers,' the bank said in a statement.
India Today
18-05-2025
- Business
- India Today
Why low inflation raises hopes of more RBI rate cuts
India's retail inflation, measured by the Consumer Price Index (CPI), fell to a near-six-year low of 3.16 per cent in April, compared to 3.34 per cent the previous month. The main driver was lower food inflation, at 1.8 per cent, due to decreased inflation for vegetables (-11 per cent). While lower inflation will leave more money in the hands of people for discretionary spending, it also gives the Reserve Bank of India (RBI) more room to further rate cuts, which, in effect, could lower the lending rates of banks for businesses and in February and April this year, the RBI cut repo—that is the rate at which the central bank lends to commercial banks—by 25 basis points each, bringing the rates down to 6 per cent. The next meeting of the Monetary Policy Committee (MPC) of the RBI, which decides on interest rates, is slated for Union government attributed the significant decline in retail inflation and food inflation in April to the fall in inflation of vegetables, pulses, fruits, meat and fish, personal care and effects, and to a research report from the State Bank of India (SBI), penned by Soumya Kanti Ghosh, their group chief economic adviser, the sharp moderation in CPI inflation (last October, it was over the RBI's tolerance limit, at 6.2 per cent) bodes well for lowering the average CPI headline forecast for FY26 below 4 per cent. advertisementGhosh expects big cuts in interest rates. 'With multi-year low inflation in March and benign inflation expectations going forward, we expect rate cuts of 75 basis points (bps) in June and August (H1) and another 50 bps cut in H2, i.e. cumulative cuts of 125 bps going forward while 25 bps rate cut has already been initiated in Feb '25. However, we feel, jumbo cuts of 50 bps, could be more effective than secular 25 bps tranches spread over the horizon,' he response to the 50-bps cut in the policy repo rate since February 2025, banks have reduced their repo-linked External Benchmark Lending Rates (EBLRs)—a mechanism used by banks to set interest rates for loans—by a similar magnitude. Whereas the Marginal Cost of Funds Based Lending Rate (MCLR) may get adjusted with some lag. MCLR is the benchmark interest rate used by banks in India to determine the minimum lending rate for various loans. It has a longer reset period and is referenced to the cost of is directly tied to external benchmarks, such as the RBI repo rate, while MCLR is based on a bank's internal cost of funds. Larger transmission to deposit rates is expected in the coming quarters, the SBI report analysts strike a more cautious note. A research note from the Bank of Baroda said that while 3.2 per cent is within the RBI's forecast of 3.6 per cent for Q1, the central bank will be cognisant of the fact that the number has come down mainly due to vegetables, which have a weight of 6 per cent in the this component keeps inflation at the target rate. 'It does look like this number may not trigger a rate cut given that there would be time to evaluate both the monsoon and tariff issues before taking a final call in August. Inflation would likely be low in May and June too due to the base effect,' the note to India Today Magazine
