Cheap Loan: These banks have made loans cheaper, now loans will be available at lower interest rates!
If you're considering a loan, this news is a welcome relief. Following the RBI's repo rate cut, four banks, including Bank of Baroda and Indian Bank, have reduced their interest rates. The new rates have been reduced by 0.25%, making EMIs cheaper. Find out how much each bank has reduced and how it will impact your finances.
If you're dreaming of buying your own home or planning a loan, this news will bring a smile to your face. On Friday, the RBI cut the repo rate by 25 basis points, providing significant relief to the common man.
Immediately following this decision, some of the country's largest banks also opened their hearts and announced reductions in loan interest rates.
While nearly all banks are preparing to make their loans cheaper following the repo rate cut, four banks have taken the lead. Bank of Baroda, Indian Bank, Bank of India, and Karur Vysya Bank have announced reduced interest rates for customers.
If you take a loan from these banks or have an account with them, you will now have to pay less interest than before.
Bank of Baroda has reduced its interest rate from 8.15% to 7.90%. Similarly, Indian Bank has also reduced its rates from 8.20% to 7.95%. Both banks have implemented their new, lower rates effective December 6, 2025.
Bank of India has reduced its interest rate to 8.10%, effective December 5th. Karur Vysya Bank has also reduced its rate to 8.55%. Lower repo rates allow banks to obtain cheaper funds from the RBI, and banks then pass this benefit directly to their customers.
This year has been a boon for borrowers. After February, April, and June, interest rates have been cut for the fourth time in December.
The repo rate, which was 6.50% at the beginning of the year, has now dropped to 5.25%. This means that your EMI burden will be significantly lighter than last year.