• Source:JND
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Following the RBI's 25 basis point reduction in the repo rate earlier this month, several significant public sector banks have recently announced rate reductions for a range of retail loan categories. This year, this is the second straight rate cut. To help consumers benefit from a softer interest rate environment, major lenders like SBI, PNB, Bank of India, and Indian Bank have also modified their external benchmark-linked lending rates.

Those who have chosen a floating interest rate loan will pay lower EMIs if the repo rate declines. A decrease in repo rates essentially results in lower interest rates that customers must pay because most Indian banks use the repo rate as the external benchmark when setting interest rates.

What Is RLLR?

The interest rate at which banks offer loans to consumers is known as the repo-linked lending rate (RLLR), and it is determined by the RBI's repo rate. An interest rate that is correlated with the repo rate is known as a "repo-linked lending rate." Banks must tie their retail loans to external benchmark lending rates, or E-BLR, according to an RBI circular published in October 2019. As a result, the majority of banks now use the repo rate as their benchmark.

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State Bank of India (SBI)

The biggest public sector bank in the nation, the State Bank of India, has also cut its lending rates by as much as 0.25%. The bank's current 8.90% EBLR (External Benchmark Based Lending Rate) will be changed to 8.65% as of April 15, 2025.

Indian Bank

After the RBI lowered the repo rate by 25 basis points, Indian Bank changed its lending rates. The repo-linked benchmark lending rate (RBLR) has decreased from 9.05% to 8.7% as a result of the bank reducing its repo benchmark rate from 6.25% to 6%. These updated rates will be applied to all repo-linked loans until the next review, and they will go into effect on April 11, 2025, according to the bank's BSE filing.

National Bank of Punjab

Additionally, Punjab National Bank reduced RLLR from 8.90% to 8.65%. The fixed margin charged over the RLLR, known as the Bank Spread (BSP), stays at 0.20%. Consequently, the ultimate lending rate made available to clients has decreased from 9.10% to 8.85%.

Bank Of India

In keeping with the RBI's 25 basis point repo rate cut, the Bank of India has also lowered its lending rates. With effect from April 9, 2025, the bank has reduced its repo-linked benchmark lending rate (RBLR) from 9.1% to 8.85%.

According to the Bank of India’s BSE filing, “Effective RBLR from 9.1% to 8.85%, a decrease of 25 bps. The new rates are effective from April 9, 2025.”

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