Punjab National Bank cuts home loan rate to 8.10% after RBI repo rate cut

State-owned Punjab National Bank on Saturday (December 6) informed that it has revised its Repo Linked Lending Rate (RLLR) following the RBI's drop in the repo rate on December 5, 2025.

The bank has reduced its RLLR from 8.35%, including BSP of 10 basis points, to 8.10%, including BSP of 10 basis points, with effect from December 6, 2025. Punjab National Bank said its Marginal Cost of Lending Rate (MCLR) and Base Rate remain unchanged.

Also, Bank of India and Indian Bank announced new home loan interest rates. Indian Bank announced a downward revision in its repo-linked benchmark lending rate following the RBI’s decision. The lender said its repo-linked benchmark lending rate has been reduced to 7.95% from 8.2%, with the new rates effective from December 6.

Also Read: How much your home loan EMI could fall after RBI's repo rate cut

The revision will bring down interest rates on long-duration lending, including home loans, resulting in a lower EMI burden for borrowers. “The revised rate is effective from December 6, 2025, till the next review,” the bank informed stock exchanges in a filing.

Bank of India reduced its Repo-Based Lending Rate (RBLR) by 25 basis points to 8.1% after the RBI cut the benchmark repo rate on Friday. The lender said the new rates came into effect from December 5. “The revision is on account of downward revision in Repo Rate announced by RBI, today, in its monetary policy,” the bank said.

This Friday, the six-member monetary policy committee led by RBI Governor Sanjay Malhotra voted unanimously to lower the repo rate by 25 basis points to 5.25% and retained a neutral stance, providing room for further rate cuts.

On Friday (December 6), shares of Punjab National Bank ended at ₹121.70, up by ₹2.15, or 1.80%, on the BSE.

Also Read: Indian Overseas Bank cuts lending rate by 50 bps to 8.35%