Banks reduced home loan interest! Your dream of owning a house will come true with affordable EMI, know which bank is better?

Home Loan News: If you are also dreaming of a new house then this news is for you. Now your dream of buying a house is going to come true. Where, many banks of the country have reduced the home loan interest rates by a huge amount.

In fact, last year in 2025, the Reserve Bank of India (RBI) made a major change and completely reduced the interest on home loan. So, after the total 1.25% (125 bps) reduction in repo rate by RBI, there is a big stir in the home loan market in the month of May this year. According to the information, if we talk about the recent situation, the repo rate is said to be stable at 5.25 percent.

At the same time, government banks Punjab National Bank (PNB), Indian Bank, Bank of India and Bank of Baroda have reduced their MCLR rates by a huge 5 basis points (BPS) in the month of July last year. Apart from this, the Reserve Bank has reduced the repo rate by 100 bps from February 2025, after which this decision has been taken.

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Know here which banks have cut how much?

Punjab National Bank: PNB has completely surprised everyone by reducing its MCLR rates by 5 bps for all tenures, where as Punjab National Bank one year MCLR rate is being seen reduced from 8.95 percent to 8.90 percent. So, the three-year MCLR rate has been changed from 9.25 percent to 9.21 percent.

Indian Bank: Talking about Indian Bank, this bank has only reduced its MCLR rates by 5 bps for some period. Where, the new rates have been fully implemented from July 3, 2025.

Bank of India: However, this bank has reduced its MCLR rates by 5 bps for all tenors. According to the information, the new rates have come into effect from July 1, 2025 and the one-year MCLR rate, which is considered very essential for loan rates, has been reduced from 9.05 percent to 9 percent. Here, the three-year MCLR rate has reduced from 9.2 percent to 9.15 percent.

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Bank of Baroda: And last of all, Bank of Baroda has also reduced the home loan interest rates significantly. The bank has completely reduced the interest rates and fixed the rate at 7.45 percent. Apart from this, Bank of Baroda has also reduced the processing fee to zero, where the bank had reduced the loan rates in the month of June last year.