Major Banks Slash Home Loan Rates: SBI, PNB, and BOB Offer New Year Relief
Hey everyone! 👋 If you’ve been dreading your monthly loan repayment, there’s actually some genuine good news to start your New Year. Specifically, big players like SBI, PNB, and Bank of Baroda have finally started cutting interest rates. Consequently, your EMIs are about to get a little lighter on the wallet.
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The Reserve Bank of India (RBI) decided to lower the repo rate from 5.50% to 5.25% earlier this month.
Major banks across the country immediately began slashing their own lending rates to match. Actually, the thing is, most of these changes are already live as of mid-December. Therefore, if your loan is linked to a repo benchmark, you should see the difference very soon.
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The Breakdown: Who Cut What?
Let’s be real—banking jargon like RLLR and EBLR can be a headache. However, the numbers themselves are pretty straightforward.
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State Bank of India (SBI): Their RLLR has dropped to 7.50% (plus premium). Furthermore, their external benchmark rate (EBLR) is now down to 7.90%.
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Punjab National Bank (PNB): They moved quickly, cutting their rate from 8.35% to 8.10% back on December 6.
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Bank of Baroda (BoB): Their benchmark rate has also seen a relief-filled dip from 8.15% to 7.90%.
But wait, there’s more. It’s not just the “Big Three.” For instance, Canara Bank and Bank of Maharashtra have also joined the party. Specifically, Bank of Maharashtra has dropped home loan rates to 7.10% and car loans to 7.45%. And here’s the kicker—they’ve even waived processing fees entirely to sweeten the deal. 🚗🏠
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The Flip Side: Not All Good News?
On the other hand, if you’re someone who lives off your savings, this might sting a bit. Since lending rates are falling, banks are also reducing interest on Fixed Deposits (FDs). Instead of high returns, you’re looking at slightly lower payouts on your parked cash. Nevertheless, for the millions of people struggling with home loan debt, the monthly savings on EMIs will likely outweigh the lower FD interest.
In short, the tide is turning for borrowers. As a result, if you’re currently on a high-interest old regime like MCLR, now might be the perfect moment to ask about switching to a repo-linked loan. Instead of a tidy wrap-up, just keep an eye on your bank statements—the relief is officially on its way….
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