India's public lenders just made loans cheaper after RBI’s surprise rate slash.

By Aniket Chakraborty June 16, 2025 Arrow

Union Bank, Canara Bank, and Indian Overseas Bank have reduced rates by 50 basis points.

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This aligns their lending rates with RBI’s benchmark repo cut to 5.5%.

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Union Bank said its new RLLR and EBLR will help both new and existing borrowers.

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IOB has brought down its repo-linked rate from 8.85% to 8.35%, effective June 12.

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Canara Bank also trimmed its rate to 8.25%, citing RBI’s liquidity push.

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The RBI’s move added ₹2.5 lakh crore liquidity by lowering the cash reserve ratio.

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This signals a policy pivot aimed at spurring lending and boosting economic activity.

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More banks are expected to follow suit as the rate cut ripple continues.

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From home to MSME loans—India’s borrowers could now breathe a little easier.

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