RBI Cuts Repo Rate, These 2 Banks Just Made Loans Cheaper - Check New Interest Rates

The RBI Cuts Repo Rate in 2025, prompting major banks like SBI and HDFC to cut loan interest rates. Check new home, auto, and personal loan rates after the RBI move.

RBI Slashes Repo Rate in 2025 Loans to Become Cheaper: In a big monetary policy move, the Reserve Bank of India (RBI) has announced a repo rate cut of 25 basis points, bringing the rate down to 6.00% from the previous 6.25%. This decision is aimed at reviving credit growth, especially in the housing, auto, and MSME sectors.

Following the announcement, two major banks State Bank of India (SBI) and HDFC Bank have already reduced their lending rates, making EMIs more affordable for new and existing borrowers.

What Is Repo Rate and Why It Matters

The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. When the repo rate is lowered:

Banks get funds at cheaper rates
They pass on the benefit by cutting loan interest rates
This results in lower EMIs and boosts borrowing across the economy

Which Banks Have Cut Loan Rates Already?

1. State Bank of India (SBI)

Home Loan Interest Rate: Reduced to 8.25%
Auto Loan Rate: Down to 8.65%
Personal Loan Rate: Now starts from 10.20%

SBI also announced limited-period EMI waiver offers for salaried borrowers applying before July 31, 2025.

2. HDFC Bank

Home Loan Rate: Cut to 8.30%
Car Loan Rate: Now 8.70%
Personal Loans: Reduced to 10.50%

HDFC is also offering special processing fee waivers for women and first-time homebuyers.

Impact on Borrowers and Market

This repo rate cut is likely to:

Encourage home buying and vehicle sales
Help MSMEs and startups access funds easily
Bring relief to borrowers with floating rate loans
Boost real estate and consumer demand

According to analysts, more banks may follow in reducing their lending rates in the coming weeks.

What Should You Do Now?

If you’re planning to:

Buy a home or car – this could be the best time to apply
Refinance an existing loan – check with your bank for new rates
Start a small business – MSME loan rates are expected to ease further

Visit your bank’s official website or mobile app to calculate revised EMIs using their loan calculators.

Cheaper Loans Are Back

With the RBI cutting the repo rate and major banks responding swiftly, borrowers can expect lower EMIs, faster loan approvals, and better offers. Whether you’re a salaried professional or a small business owner, this rate cut is your green light to borrow smarter.

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RBI Cuts Repo Rate, These 2 Banks Just Made Loans Cheaper – Check New Interest Rates