PNB, BOI, Indian Bank, and UCO Bank cut lending rates – Here’s how much you can save on loans

In a major relief for borrowers, the Reserve Bank of India (RBI) has slashed the repo rate by 0.25%, bringing it down to 6% on April 9. The move has prompted four major public sector banks—Punjab National Bank (PNB), Bank of India, Indian Bank, and UCO Bank—to cut their lending rates, effectively reducing EMIs on home, car, and personal loans.

This is the first repo rate cut in five years and was announced by RBI Governor Sanjay Malhotra during the monetary policy review. With borrowing now cheaper, both new and existing customers of these banks can expect to save more on their monthly repayments.

Here’s how each bank is adjusting its rates:

Indian Bank will bring down its repo-linked lending rate (RBLR) by 35 basis points to 8.70%, effective April 11.

Punjab National Bank (PNB) has revised its RBLR from 9.10% to 8.85%, effective Thursday.

Bank of India follows suit, reducing its rate to 8.85%, also from a previous 9.10%, effective Wednesday.

UCO Bank has brought its RBLR down to 8.80%, effective Thursday.

These reductions are expected to lighten the interest burden on borrowers and encourage more lending activity. More banks are likely to follow with similar announcements in the coming days.

For consumers, this means:

Lower monthly EMIs on home, auto, and education loans.

Increased affordability for new loans.

A boost in household savings.

The RBI’s decision is seen as a strategic move to stimulate economic growth, especially in light of current global uncertainties. With interest rates softening, now might be a smart time for borrowers to explore refinancing or securing new credit at better terms.