If you’re thinking about getting a mortgage, this might actually be a good time for you. The Reserve Bank of India (RBI) recently slashed its reporate by a significant 0.50% on June 7, bringing it down to 5.5%. Since February 2025, the total reduction has been around 1%.
This change is beneficial for customers directly. Many banks have responded by lowering interest rates on mortgages, which could mean that your monthly EMI is lower than before. And the best part? This relief isn’t just for new borrowers; existing loan holders can also take advantage of this situation.
Baroda Bank: Total interest rate reduction
Bank of Baroda has fully embraced the RBI’s rate cut. They’ve decreased their Repository Link Loan Rate (RLLR) by 50 basis points, now standing at 8.15%. According to their website, the starting mortgage rate is 8%. However, it’s unclear if these new rates have been applied following the recent cut.
PNB: Mortgage EMI is even more affordable now
The National Bank of Punjab has also offered some relief to its clients. They’ve lowered their RLLR from 8.85% to 8.35%, effective June 9th.
On social media, the bank announced, “Great news for customers. Your EMI is even cheaper now. PNB’s new mortgage rate kicks off at just 7.45%.”
This means people who take out a mortgage with PNB will enjoy an initial interest rate of 7.45%, while vehicle loans will come at a rate of 7.80% per year.
Bank of India: Interest rate reduction, EMI relief
Bank of India has also cut its rates by 50 basis points. The current RLLR now stands at 8.35%, according to a bank announcement.
UCO Bank: MCLR Rate has also been changed
UCO Bank is providing some relief as well. They’ve cut their fund-based loan interest rate (MCLR) by 10 basis points, effective from June 10th.
The new rates are:
Overnight MCLR: 8.25% ➝ 8.15%
1 month: 8.45% ➝ 8.35%
3 months: 8.60% ➝ 8.50%
6 months: 8.90% ➝ 8.80%
1 year: 9.10% ➝ 9.00%
Lower EMI and save more
The advantage of these recent rate cuts is that they directly benefit customers now. Those with loans tied to the reporate (like RLLR-based mortgages) will see their EMIs decrease. In simpler terms, the dream of owning a home has gotten a bit more attainable.
