Archive · 1 Aug 2025
Lending Rates See Biggest Drop Since Rate Cuts Began
In June, the interest rates that banks charged for new loans decreased.
This decrease was the largest since February when the central bank started lowering interest rates.
Overall, lending rates have dropped significantly since February, even though the central bank has lowered its own key interest rate by a slightly larger amount.
Public sector banks reduced their rates more than private sector banks did.
Weighted average lending rate (WALR) on fresh rupee loans fell to 8.62% in June.
The month-on-month drop was 58 basis points.
Lending rates have fallen by 78 bps for scheduled commercial banks since February.
The RBI has cut repo rates by 100 basis points.
Public sector banks saw a 56 bps drop in lending rates to 7.82%.
- Who
- The Reserve Bank of India (RBI).
- What
- Decrease in lending rates on fresh rupee loans.
- When
- June, with data released on Thursday.
- Where
- Not specified.
- Why
- To analyze lending trends and monetary policy impact.
- WALR (June)
- 8.62%
- Month-on-month drop
- 58 bps
- Lending rate drop since Feb
- 78 bps
- Repo rate cuts since Feb
- 100 bps
- PSU lending rate (June)
- 7.82%
- Private sector banks lending rate (June)
- 9.74%
