recently Reserve Bank of India (RBI) Had his Repo rate In 0.25% (25 basis point) deduction Is of Soon after this, many big banks of the country have their own Loan And Deposit (deposit) rates Also in Deduction announcement Is of The direct effect of this step is common people, especially Loan takers And Fixed deposits investors It will be on
This is the news of relief for those taking loans, because their EMI will be reducedThere itself Depositors now low interest Will get a change in loan and deposit rates by banks according to RBI’s monetary policy decisions. Repo rate The rate at which Short term loan to RBI banks Gives
When RBI reduces repo rate, for banks Funds cheap They become, so that they can also give loans to their customers at a low interest rate. Similarly, banks also have to reduce their deposit rates so that their costs and profits are balanced.
In this article, we will know in detail that after the repo rate cut, which banks have reduced their loans and deposit rates, what will be the effect on the common people, and other important things related to it.
Bank deposit rates observation
| Bank name | Details of change (loan/deposit rates) |
| SBI (State Bank of India) | RLR decreased from 8.50% to 8.25%, EBLR 8.90% to 8.65%, FD rate 6.8% to 6.7% (1-2 years) |
| PNB (Punjab National Bank) | RLR 8.90% to 8.65%, BSP 0.20% (Unchanged) |
| Bank of india | RBLR 9.10% to 8.85%, home loan rate 7.90% (dependent on CIBIL score) |
| Indian bank | RLR 9.05% to 8.70%, Repo Benchmark 6.25% to 6% |
| Bank of Baroda | 25 basis point cut in EBLR |
| Bank of Maharashtra | RLR 9.05% to 8.80%, EBLR 8.65% |
| HDFC Bank | FD rates cut from 0.10% to 0.35% |
| Yes Bank, Bandhan Bank | FD rates cut |
Impact of repo rate cut
- For loan takers: EMI will be low, which will reduce monthly expenses.
- For depositors: Fixed deposits and savings accounts will get low interest rates.
- For banking sector: Demand for loan may increase, but deposit growth may be affected.
- For economy: Cheap loans will increase investment and consumption, which can speed up economic growth.
What are repo rates, RLR, EBLR and RBLR?
- Repo Rate: The rate at which RBI gives short -term loans to banks.
- RLR (repo linked lending rate): The loan rate of the bank which is directly connected to the repo rate.
- EBLR (external benchmark -based borrowing rate): The loan rate of the bank that is associated with an external benchmark (eg repo rate).
- RBLR (repo linked benchmark lending rate): It is also a loan rate connected to the repo rate, which many banks adopt.
Changes in loan rates after repo rate deduction
- SBI has reduced RLR from 8.50% to 8.25%.
- PNB has from 8.90% to 8.65% RLLR.
- Bank of India has increased RBLR from 9.10% to 8.85%.
- Indian Bank has increased RLR from 9.05% to 8.70%.
Changes in deposit rates
- SBI has increased the FD rate of 1-2 year to 6.8% to 6.7%.
- HDFC Bank has increased the 35 -month -old FD rate from 7.35% to 7%.
- Bank of India has closed the 400 -day special FD scheme.
- Other banks have also cut FD and savings account rates from 0.10% to 0.35%.
Loans and deposit rates of major banks after repo rate cuts (April 2025)
| Bank name | Lone Rate (RLR/EBLR/RBLR) | FD Rate (1-2 years) | Other changes |
| SBI | 8.25% (RLR), 8.65% (EBLR) | 6.7% | , |
| Permission | 8.65% (RLR) | , | BSP 0.20% |
| Bank of india | 8.85% (RBLR) | , | Home loan 7.90% |
| Indian bank | 8.70% (RLR) | , | Repo 6% |
| Bank of Baroda | 25 BPS Cut (EBLR) | , | , |
| Bank of Maharashtra | 8.80% (RLR), 8.65% (EBLR) | , | , |
| HDFC Bank | , | 7% | FD rates cut |
| Yes Bank, Bandhan Bank | , | , | FD rates cut |
Benefits and disadvantages of repo rate cut
Benefits:
- Taking a loan becomes cheaper.
- Relief on monthly budget due to reduced EMI.
- Investment and consumption are promoted, leading to speed to the economy.
Loss:
- Depositors get less interest.
- Impact on the income of senior citizens.
- The deposit growth of banks may slow down.
What to do after the repo rate cut?
- If you have taken a loan at a floating rate, check your EMI, it can be reduced.
- If you are thinking of taking a new loan, this may be the right time.
- Before investing in FD, see the interest rates of different banks.
- Senior citizens should take care of the decline in FD rates and consider other investment options if needed.
RBI’s motive behind repo rate cuts
When RBI reduces the repo rate, its main objective Increase liquidity in economy And Make a loan cheap It happens. With this, people and business take more loans, which rotates money in the market and economic activities are intensified. But, this gives the depositors less interest, which is a challenge.
Banks strategy after repo rate cut
- Banks have immediately cut the loan rates to benefit the customers.
- Deposit rates have also been cut so that the cost and profits of banks remain balanced.
- Some banks have discontinued special FD schemes or reduced their interest rates.
- Banks are trying to increase loan growth and maintain deposit growth.
Summary of change in loan and deposit rates after repo rate cuts
| Field of change | Earlier rates (average) | New rates (average) | Change (average) |
| Home loan rates | 8.50% – 9.10% | 8.25% – 8.85% | 0.25% deduction |
| Personal loan rates | 10% – 12% | 9.75% – 11.75% | 0.25% deduction |
| FD Rates (1-2 years) | 6.8% – 7.3% | 6.7% – 7% | 0.10% – 0.35% deduction |
| Savings account rates | 2.75% – 3.5% | 2.75% – 3.25% | 0.25% deduction |
Suggestion for general public after repo rate cut
- Before taking the loan, compare the interest rates of different banks.
- Read the interest rates and other conditions carefully before investing in FD.
- Senior citizens should diversify their investment strategy.
- Invest additional savings in the right place when EMI is low.
conclusion
The country’s major banks have cut their loan and deposit rates after the RBI repo rate cuts. This has provided relief to the loan -taking people, but the depositors will have to face low interest rates. This step has been taken to speed up the economy, which will increase investment and consumption.
However, deposits, especially senior citizens, should reconsider their investment strategy. This strategy of banks is completely in line with the RBI’s monetary policy and is aimed at promoting economic growth.
Disclaimer: This article is written only for the purpose of information. The interest rates and banking rules given in it can change from time to time. Please consult the concerned bank or financial advisor before any financial decision.
Repo rate cuts and then changes in loan and deposit rates by banks are a real and regular banking process, according to RBI’s monetary policy. There is no forgery or rumor in it. All changes are completely real and according to RBI’s instructions.
