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In the current year, the Monetary Policy Committee (MPC) of the country's central bank 'Reserve Bank of India' has cut interest rates by a total of 0.50 percent. This means that RBI has tried to reduce the EMI of home loans and other retail loans for common people. Have your banks given you the benefit of this? This issue is coming up because the third meeting of MPC this year is going to start on Wednesday.

In this meeting which will last for three days, the Governor of the Reserve Bank will announce the decisions of MPC on Friday. Recently, a report from SBI has said that RBI can cut the repo rate i.e. interest rates by up to 0.50 percent. At the same time, most experts say that the policy rate will be cut by only 0.25 percent. In such a situation, the important question is whether the government and private banks of the country are giving the benefit of this cut to the common people or not.

Suppose a person took a home loan of Rs 50 lakh in January at an interest rate of 9.50 percent for a tenure of 15 years, then his EMI would have been Rs 52,211. RBI has cut the interest rates by 50 basis points so far. In such a situation, the interest rate of a home loan should also come down to 9 percent. In such a situation, the EMI of the home loan should also come down to Rs 50,713. This means that the home loan taker should get a relief of Rs 1,498. More than 90 percent of the banks in the country have not given to the people till now. Let us also tell you which bank has made retail loans cheaper since February.

Which bank made retail loans cheaper this year by how much

SBI: The country's largest government bank SBI has cut its lending rate by 0.25 percent. Effective April 15, 2025, the bank's EBLR (External Benchmark Lending Rate) has been reduced to 8.65 percent. The bank's RLLR has now been reduced from 8.50+CRP to 8.25+Credit Risk Premium (CRP).

Bank of Maharashtra: This government has announced a 25 basis point cut in the lending rate linked to the repo rate in line with the Reserve Bank's key policy rate. The bank's repo-linked lending rate (RLLR) has now been reduced from 9.05 percent to 8.80 per cent.

HDFC Bank: HDFC Bank has cut the loan interest rate which will be reduced by 0.25 per cent from your next interest reset date. The special thing is that HDFC has cut it by 0.50 per cent since February. After which the interest rates for home loans for salaried and self-employed people range from 8.70 per cent to 9.55 per cent, while special rates for the same category range from 8.50 per cent to 9.35 per cent till May 2, 2025.

Indian Overseas Bank: This bank cut its benchmark lending rate from 6.25% to 6% in line with the cut in the repo rate. IOB said in a statement that the bank has decided to pass on the benefit of the cut in interest rates to the customers. The bank has cut the RLLR by 25 basis points from 9.10 per cent to 8.85 per cent.

Punjab National Bank: PNB, the country's second largest public sector bank, has also cut interest rates by 0.25 per cent. After this the bank's RLLR has come down from 8.90 per cent to 8.65 per cent.

Indian Bank: Indian Bank has revised its lending rates following the RBI's 25 basis points cut in the repo rate. The bank has reduced its repo benchmark rate from 6.25 per cent to 6 per cent. As a result, the repo-linked benchmark lending rate (RBLR) has been reduced from 9.05% to 8.7%.

Bank of India: Bank of India has also reduced its lending rates in line with the RBI's 25 basis points cut in the repo rate. The bank has reduced its repo-linked benchmark lending rate (RBLR) from 9.1 percent to 8.85 per cent, the revised rate will be effective from April 9, 2025.

No relief in line with the repo rate
We have assessed the interest rates of more than half a dozen banks above. Which it has been seen that since February till now, most of the banks have reduced the interest rates of home loans and other retail loans by only 0.25 per cent. Except HDFC Bank, which has reduced the interest rate by 0.50% in line with the RBI MPC. That too at a time when the common people need this relief a lot. The country's loan takers have waited for this relief for about 5 years. Even after that, the country's banks have not yet given the common people as much relief on interest rates as they should have.

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