Home & Auto Credit Must Soften: Banks Hit Rates Down After RBI Slashed Repo Rate; Home / Auto EMI bound to Recommend

Following the 25 basis point rate cut on repo by the RBI last time to 5.25%, the customers are prepared to receive a breather on their home and auto loans, courtesy of major banks lowering down their rates. Dropping benchmark linked rates like MCLR, RLLR, and RBLR, so directly understood by the customers, is helping take an EMI or bear a hefty reduction in proportionate repayment terms depending on the individual loan terms.

Key Banks and Their Averted Lending Rates

HDFC Bank decreased MCLR in all-different timeframe ranges from 5bps to 8bps apiece. The rate stands around 8.30%-8.55%, based on the loan tenor.

• Punjab National Bank: Repo Linked Lending Rate (RLLR) was cut from 8.35% (including BSP of 10bps) to 8.10% from December 6, 2025.
• Bank of Baroda: BRLLR was down to 7.90% from 8.15%, burrowing its customers interest meanings in both new and old borrowers.
• Again, Indian Banks: You can receive instant relief now from its Retail Loans Linked to RLLR reduction, from 8.20% to 7.95%, effective December 6, 2025.
• Bank of India: RBLR has been cut by 8.35% to 8.10%, providing some relief to borrowers on interest payments.
• Bank of Maharashtra: Reduction of home loan rates from 7.35% to 7.10% and car loan rates to 7.70%. All processing fees shall also be eliminated, thereby giving some slack to the customers.

Implications for Borrowers

• Further reduction in EMIs for existing home and auto loans.
• Another chance of a haircut in repayment term.
• Application of waived processing fee benefiting in reduced upfront costs at some banks.

This release would be well received by customers facing growing expenses, leaving a bit of financial breathing space for the Christmas shopping season.