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Business
Major Indian banks cut repo‑linked home loan rates, SBI leads the change
✍️ The Economic Times
🗓 17 Oct 2026, 03:36 AM
👁 38
State Bank of India, Punjab National Bank, Bank of India and several others have lowered the interest rates on home loans that are tied to the RBI’s repo rate, reflecting the recent monetary easing.
The Reserve Bank of India’s recent reduction in the repo rate has prompted a wave of adjustments across the housing‑loan market. Leading lenders, including State Bank of India (SBI), Punjab National Bank (PNB) and Bank of India, have announced lower interest rates on home loans that are directly linked to the central bank’s policy rate.
These revisions mean that borrowers with repo‑linked mortgages will see a marginal decline in their monthly EMIs, offering immediate relief amid a still‑tight credit environment. The banks indicated that the new rates will be applicable to both new loan applications and existing accounts that are eligible for rate reset.
Financial analysts note that while the cuts are modest, they signal banks’ willingness to pass on monetary policy benefits to retail borrowers. The move also aligns with the RBI’s broader objective of stimulating demand in the real‑estate sector.
Consumers are advised to review their loan agreements and approach their lenders to confirm the exact revised rate, as future repo movements could further alter loan costs.
These revisions mean that borrowers with repo‑linked mortgages will see a marginal decline in their monthly EMIs, offering immediate relief amid a still‑tight credit environment. The banks indicated that the new rates will be applicable to both new loan applications and existing accounts that are eligible for rate reset.
Financial analysts note that while the cuts are modest, they signal banks’ willingness to pass on monetary policy benefits to retail borrowers. The move also aligns with the RBI’s broader objective of stimulating demand in the real‑estate sector.
Consumers are advised to review their loan agreements and approach their lenders to confirm the exact revised rate, as future repo movements could further alter loan costs.