• Source:JND
Add as a preferred

Home Loan Interest Rate: Following the Reserve Bank of India's (RBI) 25 basis point repo rate cut on April 9, interest rates on new home loans have fallen below 8% in May 2025. A number of Indian banks modified their Marginal Cost of Funds-Based Lending Rates (MCLR) in May 2025, which had an effect on borrowers' Equated Monthly Installments (EMIs) and loan interest rates. These modifications are a reflection of the Reserve Bank of India's (RBI) monetary policy decisions as well as the banks' reactions to changing economic conditions.

Punjab National Bank Home Loan Interest Rate

A wider decrease in lending rates for all tenures was announced by Punjab National Bank, and it came in effect in May. The one-month and three-month rates were lowered by 10 basis points each, and the overnight MCLR fell by 15 basis points to 8.25%. A crucial benchmark for the majority of consumer loans, the bank's one-year MCLR, was lowered from 9.05% to 8.95%. Additionally, PNB reduced its three-year MCLR from 9.35% to 9.25%.

Also Read: Stock Under Rs 120: This IT Stock Jumps Nearly 5% After Company Issues $10 Million FCCB

Bank Of Baroda Home Loan Interest Rate

With effect from May 12, 2025, Bank of Baroda lowered its one-year MCLR from 9.00% to 8.95%, a 5 basis point decrease. Overnight, one-month, three-month, and six-month MCLRs are among the other tenures that have not changed. The six-month rate is still at 8.80%, and the overnight rate is at 8.15%. The most widely used benchmark for home and auto loans is the one-year MCLR, and the reduction is probably going to provide borrowers with a small amount of EMI relief.

Canara Bank Home Loan Rate

Selectively lowering its overnight tenor by 5 basis points, Canara Bank's MCLR is currently 8.30%. Additionally, the two-year MCLR was lowered to 9.25%, a decrease of 10 basis points. Other tenures, though, remained unaltered.

HDFC Bank Home Loan Rate

For certain loan durations, HDFC Bank announced a 15 basis point decrease in its Marginal Cost of Funds-based Lending Rates (MCLR). After the revision, which went into effect on May 7, 2025, HDFC Bank's MCLR now varies based on the loan tenure, from 9.00% to 9.20%. This represents a drop from the 9.10% to 9.35% range that was in effect in April 2025.

Also Read: 8th Pay Commission: What Could Be The New Fitment Factor And How Much Will Salaries Rise?

Also In News