Latest news with #RepoLinkedLendingRate
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).
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Business Standard
12-06-2025
- Business
- Business Standard
Bank of Maharashtra cuts retail loan rates by up to 50 bps post RBI move
Bank of Maharashtra on Thursday announced a reduction of up to 50 basis points in interest rates on retail loans, including home, car, education and other loans linked to the Repo Linked Lending Rate (RLLR). According to the bank, the revised rates are effective from 10 June and align with the recent rate reduction by the Reserve Bank of India (RBI). The bank stated that home loans will now start at 7.35 per cent and car loans at 7.7 per cent. 'This benefit of reduced interest rates reflects the bank's commitment to offer the best financing solutions to all its customers and help them fulfil their dreams,' the bank said. It added, 'In the current interest rate landscape, the bank is making retail loans cheaper to bring in cheer among its customers.' Banking industry Bank of Baroda has also reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across various tenors ranging from one month to one year. Additionally, three other public sector banks—Canara Bank, Union Bank of India and Indian Overseas Bank—have cut their External Benchmark Lending Rates (EBLR) by 50 basis points. Canara Bank and Union Bank's repo-linked lending rates now stand at 8.25 per cent, while Indian Overseas Bank's RLLR is 8.35 per cent. These rates apply to retail loans, including home, vehicle and personal loans, as well as loans extended to the micro, small and medium enterprises (MSME) sector. These rate adjustments follow the Reserve Bank of India's decision on Friday to reduce the benchmark repo rate by 50 basis points to 5.5 per cent. The six-member Monetary Policy Committee, chaired by Governor Sanjay Malhotra, voted five to one in favour of the rate cut. The RBI also lowered the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent in phases, which is expected to inject ₹2.5 lakh crore into the banking system. Inflation data India's retail inflation eased to 2.82 per cent in May from 3.16 per cent in April, primarily due to a slower pace of food price increases, according to government data released on Thursday. In rural areas, headline inflation fell to 2.59 per cent in May from 2.92 per cent in April, while food inflation based on the Consumer Food Price Index declined to 0.95 per cent from 1.85 per cent during the same period.
Time of India
12-06-2025
- Business
- Time of India
Home loan EMIs to fall: Canara Bank, Union Bank, IOB cut lending rates after RBI repo rate cut
Impact of RBI rate cut on home loan borrowers What is RLLR? Academy Empower your mind, elevate your skills Bank Old RLLR Revised RLLR Effective Date Canara Bank 8.75% 8.25% 12-Jun-25 Union Bank of India 8.75%* 8.25% 11-Jun-25 Indian Overseas Bank 8.85% 8.35% 12-Jun-25 Leading public sector banks, such as Canara Bank Union Bank of India , and Indian Overseas Bank have lowered their Repo Linked Lending Rates (RLLR) in response to the Reserve Bank of India 's recent 50 basis point repo rate cut . Home loan borrowers can anticipate some relief in interest rates as a four major public sector banks Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Bank and Bank of India (BOI) had announced reductions in their home loan interest rates RBI's rate actions have a direct impact on home loan interest rates that are linked to the repo rate, or Repo Linked Lending Rates (RLLR). A lower repo rate usually 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).Repo-linked lending rate (RLLR) is the interest rate at which banks extend loans to customers, based on the repo rate set by RBI. The term 'repo-linked lending rate' refers to an interest rate that is linked to the repo rate. An RBI circular issued in October 2019 mandates that banks link their retail loans to external benchmark lending rates, known as EBLR. Consequently, the repo rate has become the benchmark for most impact of the reduction of RLLR will be different for old and new home loan borrowers. Most of these banks have passed on the reduction benefit to new borrowers immediately. However, old borrowers, who have already have a home loan, will get the benefit as per their corresponding interest rate reset 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, Bank of IndiaThe 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 RLLR.
Mint
12-06-2025
- Business
- Mint
RBI cuts repo rate by 50 bps: How your home loan EMIs will be affected instantly
You may be relieved that the recent 50 bps (0.5%) cut in interest rates by the Reserve Bank of India (RBI) will result in lower EMIs (Equated Monthly Instalments) on home loans. But do you know that the time it takes for the rate cut to have an effect on your EMIs will depend on the type of loan that you have taken? For instance, if your home loan is based on MCLR (Marginal Cost of Funds based Lending Rate) the changes would take longer to reflect on your EMIs. But if you have taken RLLR (Repo Linked Lending Rate) home loans, the impact of RBI's rate cuts on your EMIs will be faster. RLLRs are a fairly recent phenomenon wherein the home loan interest rate is reset every three months and is tied to RBI's prevailing repo rates. In contrast, MCLR is based not just on the repo rate but also the liquidity in the banking system and cost of funds incurred by banks. As a result, the transmission of interest rate changes is slower in MCLR compared to RLLR. Here is a guide on home loans based on repo rates, its features, advantages and disadvantages. What is RLLR in home loans? As the name implies, RLLR is linked to the repo rate set by the RBI. A repo-linked home loan is a floating-rate loan where the interest rate moves in sync with the RBI's repo rate. If the repo rate drops, your loan interest drops. If it rises, your interest goes up. Banks and financial institutions calculate RLLR by taking into account the prevailing repo rate and the spread. The spread is the additional percentage banks charge to cover their operational costs and also includes their profit margins. It varies from 2.5%-3% depending on the lender. So, the interest rate will work out to 8%-8.5% per year (the current repo rate of 5.5% plus the spread) for RLLR-based home loans. 'Repo-linked loans are more transparent, fair, and responsive. They're ideal if you want to benefit from falling rates and don't mind some variability,' says Samit Shetty, founder of Nivāsa Finance, a provider of home loan advisor networks. 'Unlike MCLR or base rate loans, repo-linked loans do not rely on internal bank calculations, providing greater transparency. Interest rates adjust typically every three months compared to 6-12 months in MCLR loans leading to quicker benefit (of) transmission during repo rate cuts,' says Foram Naik Sheth, NPV Associates LLP, a Mumbai-based Chartered Accountancy firm. 'Most older home loans (like MCLR or base rate) didn't pass on RBI rate cuts quickly. With repo-linked loans, banks are required to update your rate promptly—usually every three months,' Shetty says. Further, the bank has full control over interest rates in MCLR-based loans while in RLLR-based loans the change in rates happen automatically. What are the advantages and how does it affect EMIs? RLLR-based home loans are quite advantageous in a falling interest rate cycle. For instance, RLLR has come down by 1% since the beginning of 2025 (from around 9% in January to about 8% after the latest rate cuts). The RBI has cut rates for the third consecutive time in 2025 reducing it by 100 bps (1%) bringing the repo rate to 5.5%, its lowest level since August 2022. So, in six months the savings in EMI would be quite significant. If you have taken a home loan of ₹40 lakh with a tenure of 20 years, then the prevailing interest rate of around 8.5% will come down to 8% after the latest rate cut. As a result, the EMI on the ₹40 lakh loan will come down from around ₹34700 to about ₹33450, a drop of ₹1250. If the rate cut holds, you would be able to save ₹30 lakh, which is equivalent to nearly 10 months of EMI payments, over the full tenure of the loan. 'In a falling interest rate scenario, repo-linked home loans lead to quick reduction in home loan rates, as they are tied to the RBI's repo rate. This results in either lower EMIs or faster loan repayment,' Sheth says. The reduction in repo rates by RBI will start reflecting in EMIs from August for RLLR-based loans whereas it can take up to December for any changes to occur in MCLR-based loans. What are the disadvantages? Though RLLR-based home loans come with a lot of advantages, there are some disadvantages as well. Interest rate risk is the biggest shortcoming in RLLR-based loans. If the RBI decides to increase repo rates, you will end up paying higher EMIs. 'When RBI hikes rates, your EMI goes up just as fast. Be prepared for fluctuations. It's great in a falling-rate market, but not ideal if rates rise,' Shetty says. 'In case of increase in repo rate, the EMIs can rise quickly making it more volatile than any other loans. Further, since the rates reset every three months, EMIs or loan tenure can change frequently,' Sheth says. Though the same is true for MCLR-based home loans, the faster transmission of interest rate changes means that the effect will be quicker in RLLR-based loans. Can borrowers switch to RLLR? Borrowers can switch to RLLR-based home loans by making a request to the lender. If the lender offers RLLR-based loans, you can switch your existing loan after paying the necessary fee. 'If you're still on MCLR or base rate, you can request your bank to switch usually by paying a small fee ( ₹1,000– ₹2,000). If your lender is an HFC (like LIC Housing), you can refinance with a bank that offers repo-linked loans,' Shetty says. But make the switch only if you are sure about the savings. Borrowers, who have a long repayment tenure, say 10 years or more, can consider shifting their loans to RLLR as the savings on interest can be substantial. Even in this case, you must be prepared for interest rate risks as the cycle can turn any time. If you are nearing the completion of your loan tenure, it is better to stay with the existing structure as you will be paying unnecessary expenses besides exposing your loan to interest rate risks.
India.com
12-06-2025
- Business
- India.com
Canara Bank, Union Bank, IOB Slash Home Loan Rates --Check Latest Lending Rates
New Delhi: Canara Bank, Union Bank and Indian Overseas Bank (IOB) have announced reduction in their lending rates following the Reserve Bank of India's (RBI) announcement cutting the repo rate by 50 basis points, from 6.00% to 5.50%, in the latest Monetary Policy Committee (MPC) meeting. Canara bank has reduced Repo Linked Lending Rate (RLLR) from 8.75 % to 8.25 % (applicable on its assets portfolio linked to External Benchmark rate). The revised lending rates will be effective from 12 June 2025, said Canara Bank. "The RLLR has been reduced by 0.50% (50 basis points), directly reflecting the decrease in the RBI's repo rate. This move will lower borrowing costs for customers with loans linked to RLLR. Depending on their loan terms, customers may benefit from reduced EMIs (Equated Monthly Instalments) or a shorter loan tenure. Canara Bank, with a commitment to provide better banking experience to its customers, has offered the due benefits to borrowers by reducing RLLR," the bank said in a statement. Union Bank and Indian Overseas Bank Hhave also announced a downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points.
