Archive · 9 Dec 2025
Banks Cut Home Loan Rates After RBI Policy
The Reserve Bank of India (RBI) recently cut its repo rate by 25 basis points to 5.25%.
This means banks can lend money at lower interest rates.
Several banks, like HDFC Bank and Punjab National Bank, have already reduced their home loan rates.
For people who have taken a home loan of Rs 50 lakh for 20 years, this means they will pay about Rs 4,000 less every month.
The RBI has cut rates several times this year, making home loans cheaper and easier to pay off.
Banks are passing on these benefits to their customers, and it's good news for anyone who has a home loan or is thinking of taking one.
The RBI cut its repo rate by 25 basis points to 5.25% on December 5, 2025.
Several banks, including HDFC Bank, Punjab National Bank, and Bank of Baroda, have reduced their home loan rates.
For a Rs 50 lakh loan over 20 years, the EMI savings amount to nearly Rs 4,000 per month.
The cumulative rate cuts in 2025 have made home loans significantly cheaper, improving affordability.
Borrowers with repo-linked loans will see automatic rate reductions on their reset dates.
- Who
- Banks including HDFC Bank, Punjab National Bank, Bank of Baroda, Indian Bank, Bank of India, and Bank of Maharashtra
- What
- Cut home loan rates following the RBI's repo rate cut
- When
- December 5-6, 2025
- Where
- India
- Why
- To pass on the benefit of the RBI's repo rate cut to borrowers, easing the EMI burden and improving affordability
- RBI Repo Rate Cut
- 25 basis points (bps) to 5.25%
- Cumulative Rate Cut in 2025
- 125 bps
- Banks That Cut Rates
- HDFC Bank, Punjab National Bank, Bank of Baroda, Indian Bank, Bank of India, Bank of Maharashtra
- Impact on EMI for Rs 50 Lakh Loan
- Monthly savings of nearly Rs 4,000 for a 20-year tenure
- Total Interest Saved
- Rs 9,29,366.98 for a Rs 50 lakh loan over 20 years
- Tenor Reduction
- 42 months for a Rs 50 lakh loan with the same EMI
- Effective Dates
- December 5-6, 2025
Sources
Banks cut home loan rates after RBI policy: HDFC Bank, PNB, BoB lead — find out your EMI savings
RBI’s latest cut extends a 10-year downward trend in Repo Rate from 7.75% – 5.25%: A detailed timeline
Leading public, private banks cut home loan rates after RBI’s slashes repo rate
Avoid complacency and remain vigilant in a dynamic environment, RBI Guv Malhotra tells top bankers
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RBI Governor urges banks to lower lending costs, improve customer service and boost safeguards
