RBI Repo Rate Cut Impact: HDFC Bank Lowers Lending Rates For All Loan Tenures

Last Updated:June 09, 2025, 06:30 IST

After PNB, HDFC Bank also cuts lending rates for all loan tenure by 10 bps. It came to effect from June 07.

HDFC Bank has lowered its benchmark lending rates after the Reserve Bank of India (RBI) unexpectedly slashed the repo rate by 50 basis points to stimulate the slowing economy.

The bank has decreased its marginal cost of funds-based lending rates (MCLR) by 10 basis points across all loan tenures. As per its website, the new rates took effect on 7 June. The overnight and one-month MCLR are now 8.90%, the three-month rate is 8.95%, and the six-month and one-year rates have been reduced to 9.05%. The two- and three-year rates have been cut from 9.20% to 9.10%.

These changes come after the RBI’s recent policy review, where the central bank not only delivered a surprising 50 basis point repo rate cut to 5.5% but also reduced the cash reserve ratio (CRR) by 100 basis points to 3%. The CRR cut is expected to inject an additional Rs 2.5 lakh crore into the banking system.

Monetary Policy Committee Decision

The RBI’s monetary policy committee, led by Governor Sanjay Malhotra, voted 5-1 in favor of the rate cut, indicating a stronger push to boost lending and economic activity. This latest decision brings the total rate cuts for 2025 to 100 basis points, following earlier reductions in February and April.

PNB Home Loan New Rate

Punjab National Bank (PNB), one of India’s leading public sector lenders, has announced a sharp reduction in its lending rates, offering much-needed relief to borrowers. The bank has revised its Repo Linked Lending Rate (RLLR) downward by 50 basis points (bps), following the Reserve Bank of India’s (RBI) recent decision to cut the repo rate by 50 bps.

Effective from June 9, 2025, PNB’s revised lending rates will make EMIs significantly more affordable for both existing and new borrowers. As per the bank’s latest update on social media platform X, the new rates are:

Home Loans starting from 7.45% per annum

Vehicle Loans starting from 7.80% per annum

Lower lending rates mean cheaper access to credit, allowing consumers to save more on interest payments over the loan tenure.

Borrowers with existing loans linked to RLLR will automatically see their EMIs reduced in the coming billing cycle, while new borrowers can now avail loans at significantly lower rates. The rate cut is particularly beneficial for homebuyers, car loan applicants, and small business owners who rely on institutional finance.

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