Public Sector Banks – Repo-Linked Lending Rates (RLLR/RRLR)
Bank of Baroda (BoB) – Cut RLLR by 50 bps to 8.15%, effective June 7—fully passed on RBI rate cut.
Punjab National Bank (PNB) – Reduced RLLR from 8.85% to 8.35%, effective June 9; home loans now from 7.45%, vehicle loans from 7.80%.
UCO Bank – Slashed RRLR by 50 bps to 8.30% (from June 9) and trimmed MCLR across tenors—overnight to 8.15%, one-month to 8.35%, three-month to 8.50%, six-month to 8.80%, one-year to 9.00%, effective June 10.
Bank of India (BoI) – RLLR down 50 bps to 8.35%, effective June 6 .
Private Sector Banks – MCLR Adjustments
HDFC Bank – MCLR cut by 10 bps across all tenures, effective June 7:
Overnight & 1‑month: 8.90%
3‑month: 8.95%
6‑month & 1‑year: 9.05%
2‑year & 3‑year: 9.10%. – Repo-linked loans expected to reflect full 50 bps cut next month.
Karur Vysya Bank – Reduced 6‑month MCLR by 10 bps to 9.80%, and 1‑year MCLR by 20 bps to 9.80%, effective June 7.
Context & Takeaways
RBI repo rate cut from 6.00% to 5.50% on June 6, 2025.
Public sector banks quickly transmitted the full 50 bps cut to repo-linked loan rates, benefiting both existing and new borrowers.
Private banks adjusted MCLR, yielding smaller but still meaningful rate cuts for borrowers on that benchmark.
Borrowers with repo-linked loans (home, auto, business) should see IMMEDIATE EMI relief upon loan reset.
Borrowers on MCLR or base-rate-linked loans must check with their bank or consider switching to external benchmark-linked loans for faster benefit realization.
What You Can Do
Confirm which benchmark your loan uses (RLLR/RRLR vs. MCLR).
Check with your lender if the new rate has been applied.
For MCLR-linked loans, ask if you can convert to an external benchmark-linked option to get quicker adjustment.
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