Archive · 2 Jun 2025
Banks Cut Home Loan Interest Rates in May
Several banks have lowered their home loan interest rates in May.
Bank of Baroda, Canara Bank, Punjab National Bank (PNB), and HDFC Bank announced reductions in their Marginal Cost of Funds-based Lending Rates (MCLR), which influences home loan rates.
These changes may offer borrowers some relief on their monthly payments.
PNB's cuts were the most comprehensive, affecting all loan durations.
HDFC Bank's MCLR now ranges from 9.00% to 9.20%.
The changes will impact the cost of borrowing for home loans.
Bank of Baroda lowered its one-year MCLR to 8.95%.
Canara Bank reduced its overnight MCLR to 8.30% and two-year MCLR to 9.25%.
Punjab National Bank reduced lending rates across all tenures.
PNB's one-year MCLR dropped to 8.95%, and three-year MCLR dropped to 9.25%.
HDFC Bank reduced its MCLR to between 9.00% and 9.20%.
- Who
- Bank of Baroda, Canara Bank, PNB, and HDFC Bank.
- What
- Banks have reduced home loan interest rates.
- When
- Effective from May 2025.
- Where
- Not explicitly stated.
- Why
- To provide EMI relief to borrowers.
- Bank of Baroda's one-year MCLR
- 8.95%
- Canara Bank's overnight MCLR
- 8.30%
- Canara Bank's two-year MCLR
- 9.25%
- PNB's one-year MCLR
- 8.95%
- PNB's three-year MCLR
- 9.25%
- HDFC Bank's MCLR range
- 9.00% to 9.20%
