From HDFC To PNB: Banks Cut Lending Rates After RBI Repo Slash By 25 Bps To 5.25%

Last Updated:December 09, 2025, 06:30 IST

After RBI cut the repo rate to 5.25 percent, HDFC Bank, PNB, Bank of Baroda, Indian Bank, Bank of India and Bank of Maharashtra reduced lending rates, easing EMIs for borrowers.

RBI MPC Meeting 2025: Repo Rate Cut Today Latest News

After the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 5.25% in its December MPC meeting, several major banks have begun reducing their lending rates. This will directly ease the burden on borrowers tied to MCLR, RLLR, RBLR and other benchmark-linked loans.

With these revisions, many existing customers can expect either lower EMIs or, depending on their loan agreement, a shorter repayment tenure.

HDFC Bank trims MCLR

HDFC Bank has lowered its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points across different loan tenures.

New MCLR range: 8.30% to 8.55%

Earlier range: 8.35% to 8.60%

This will benefit borrowers whose home or other retail loans are linked to MCLR.

PNB reduces RLLR

Punjab National Bank (PNB) has cut its Repo Linked Lending Rate (RLLR) from 8.35% to 8.10%, including the 10 bps BSP.

The new rate is effective from December 6, 2025, following the RBI’s repo rate cut.

The bank confirmed the update through its filing on the BSE website.

Bank of Baroda lowers BRLLR

Bank of Baroda has revised its Benchmark Retail Loan Lending Rate (BRLLR) to 7.90%, down from 8.15%.

This reduction will offer slight but meaningful relief to borrowers servicing retail loans.

Indian Bank cuts RLLR

Indian Bank has dropped its repo-linked benchmark lending rate from 8.20% to 7.95%, effective December 6, 2025.

The new rate will apply across the bank’s loan portfolio.

Bank of India revises RBLR

Bank of India has reduced its Repo Based Lending Rate (RBLR) from 8.35% to 8.10%, effective December 5, 2025.

The bank said the revision follows the RBI’s downward adjustment in the repo rate.

Bank of Maharashtra cuts home & auto loan rates

Bank of Maharashtra has gone a step further by cutting both home and car loan rates.

Home loan: reduced from 7.35% to 7.10%

Car loan: reduced from 7.70% to 7.45%

The bank has also waived all processing fees, reducing the upfront cost for new borrowers.

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