Home Loan Interest Rates

Big Relief Just Announced by 4 Government Banks – Home Loan Interest Rates Slashed

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Great news for homebuyers! Four major government banks have cut home loan interest rates in June 2025. Here’s the latest rate list and how you can benefit from lower EMIs.

Homebuyers Rejoice: 4 Government Banks Announce Major Home Loan Rate Cuts: In a welcome move for millions of homebuyers, four leading government banks have officially reduced their home loan interest rates, providing major relief amid rising inflation and housing costs. The new rates are effective from June 2025, and will directly benefit both new applicants and existing borrowers opting for balance transfers.

1. Updated Home Loan Interest Rates – June 2025

Here’s a look at the latest rates from 4 PSU banks:

  1. State Bank of India (SBI): From 8.55% → 8.35%
  2. Punjab National Bank (PNB): From 8.75% → 8.45%
  3. Union Bank of India: From 8.60% → 8.40%
  4. Bank of Baroda (BoB): From 8.65% → 8.30%

These rates apply to salaried borrowers with a CIBIL score of 750 or above. Women borrowers may get an additional 0.05% concession in select banks.

2. Who Benefits from This Rate Cut?

  1. New home loan borrowers applying in June 2025
  2. Existing borrowers opting for a home loan balance transfer
  3. Customers with floating interest rates — EMIs will reduce automatically
  4. First-time homebuyers under PMAY (Pradhan Mantri Awas Yojana) may see added savings

3. How Much Can You Save With the New Rate?

Assume a loan of ₹30 lakh over 20 years:

  • Old Rate @8.65%: EMI = ₹26,295
  • New Rate @8.35%: EMI = ₹25,727
  • Monthly Savings: ₹568
  • Total Savings Over 20 Years: ₹1.36 lakh+

This is a substantial relief for mid-income and salaried families planning to purchase or refinance a home.

4. Why Are Banks Cutting Rates Now?

The rate reduction follows RBI’s monetary easing signals and an effort by public sector banks to boost housing demand. This move is also seen as a response to private lenders aggressively offering promotional home loan schemes in early 2025.

5. How to Apply for a Home Loan at the New Rate

  1. Visit the official website or app of the selected bank
  2. Use the home loan EMI calculator to check affordability
  3. Upload KYC documents, salary slips, and property papers
  4. Track application digitally or through a branch visit
  5. Get sanction letter in as little as 48 hours

Right Time to Buy or Refinance Your Home

If you’re planning to buy a new house or reduce your EMIs by transferring your loan, this interest rate cut by 4 government banks is the ideal window. Act now to lock in a lower rate and maximize long-term savings.

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