Home Loan EMI / Now your home loan EMI will be reduced, these big banks have reduced interest rates

After the Reserve Bank of India cut the repo rate, major banks have reduced MCLR. SBI, Bank of Baroda, HDFC and PNB have reduced rates by up to 5 basis points. Now the new lending rates will be applicable from 7.90% to 9.15%, which will make loans cheaper for customers.

Home Loan EMI: Despite no change in the repo rate by the Reserve Bank of India (RBI), major banks in the country have announced a reduction in their Marginal Cost of Funds Based Lending Rate (MCLR). Leading banks such as State Bank of India (SBI), Bank of Baroda, HDFC Bank, and Punjab National Bank (PNB) have revised their MCLR. Let’s look at the details of these rate cuts and the new interest rates.

State Bank of India (SBI) Lending Rates

The country’s largest public sector bank, State Bank of India, has reduced some of its MCLR by 5 basis points (bps). This change is effective from August 15, 2025. Now, SBI’s MCLR ranges between 7.9% and 8.85%, compared to the earlier 7.95% to 8.9%.

Tenure	Previous MCLR (%)	Revised MCLR (%)
Overnight	7.95	7.90
1 Month	7.95	7.90
3 Months	8.35	8.30
6 Months	8.70	8.65
1 Year	8.80	8.75
2 Years	8.85	8.80
3 Years	8.90	8.85

Bank of Baroda Lending Rates

Bank of Baroda revised its MCLR effective from August 12, 2025. The new rates for different tenures are as follows:

Sr. No.	MCLR Benchmark	Effective MCLR (%) from 12.08.2025
1	Overnight MCLR	7.95
2	1 Month	7.95
3	3 Months	8.35
4	6 Months	8.65
5	1 Year MCLR	8.80

The bank has reduced its overnight and one-month MCLR by up to 15 basis points, while other tenures have seen a cut of 5–10 basis points.

HDFC Bank Interest Rates

India’s largest private sector bank, HDFC Bank, has also revised its MCLR. The new lending rates range between 8.55% and 8.75%, effective from August 7, 2025. This revision was made after the RBI’s August meeting.

Punjab National Bank (PNB) Lending Rates

Punjab National Bank has reduced its MCLR by 5 basis points, effective from August 1, 2025—even before the RBI meeting. The new rates are as follows: