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The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points (0.25%) in its MPC meeting on 5 December 2025. Now the repo rate has come to 5.25%. This is the fourth reduction of this year, due to which there has been a total reduction of 1.25 percent. At the same time, as soon as the repo rate has come down, many banks including Punjab National Bank, Bank of Baroda have made the loans cheaper by giving gifts to their customers.
If you are thinking of taking a loan, then this news is a relief for you. In fact, the effect of the announcement of 0.25 percent cut in repo rate by the Reserve Bank of India (RBI) is now visible. As soon as RBI reduced the repo rate, many banks have reduced their interest rates.
RBI has recently made a big cut in the repo rate and brought it down to 5.25 percent. After this, many banks including Punjab National Bank, Bank of Baroda have reduced the loan rates.
PNB has reduced its Repo Linked Lending Rate (RLLR) from 8.35% to 8.10%. The new rates include a Basic Service Price (BSP) of 10 basis points. However, there has been no change in the marginal cost of lending rate (MCLR) and base rate of the bank. The new interest rates have come into effect from December 6, 2025.
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Public sector Bank of Maharashtra (BOM) has announced to reduce the interest rate on home, car, education and other RLLR linked products by 0.25 percent on December 7. The bank said that after the cut in interest rates, the home loan interest rate starts from 7.10 percent. At the same time, the interest rate on car loan is 7.45 percent. The new rates have come into effect from December 6.
Public sector Bank of Baroda has reduced its lending rate. The bank said that Baroda Repo Based Lending Rate (BRLLR) has been reduced from 8.15 percent to 7.90 percent. These new rates have come into effect from 6 December 2025.
Indian Bank has reduced the repo-linked benchmark lending rate (RBLR) from 8.20% to 7.95%. Apart from this, the bank also reduced the Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points. The new rates are applicable from 6th December.
Bank of India has reduced the loan rate related to repo rate cut i.e. RBLR by 0.25 percent from 8.35% to 8.10%. This rate has become effective from December 5.
