EMI: You will get relief in EMI, these government banks have reduced their interest rates by this much..

The country's big government banks have given big relief to their customers. Punjab National Bank (PNB), Indian Bank, and Bank of India have cut their interest rates by 5 basis points. With this, home loan, auto loan, and other loan borrowers will now have to pay less interest. This reduction has come into effect from July 2025. The Reserve Bank of India (RBI) had reduced the repo rate by 100 basis points from February 2025, after which the banks have taken this step.

What is MCLR?

First of all, understand MCLR, i.e., Marginal Cost of Funds Based Lending Rate. This is the minimum interest rate at which banks charge interest for a loan. This rate sets the minimum limit of the loan interest rate. According to RBI rules, banks cannot give loans at interest rates lower than this rate unless a special exemption is given.

PNB gives relief
Punjab National Bank, the country's second-largest public sector bank, has cut MCLR by 5 basis points for all tenures. The new rates are effective from July 1, 2025.

One day, MCLR: Reduced from 8.25% to 8.20%.

One-month MCLR: Reduced from 8.40% to 8.35%.

Three-month MCLR: Reduced from 8.60% to 8.55%.

Six-month MCLR: Reduced from 8.80% to 8.75%.

One-year MCLR: This rate, important for home loans, has been reduced from 8.95% to 8.90%.

Three-year MCLR: Reduced from 9.25% to 9.20%.

Indian Bank also reduced rates.
Indian Bank has also reduced MCLR by 5 basis points for some periods. These new rates are effective from July 3, 2025.

One day MCLR: No change at 8.20%.

One-month MCLR: Reduced from 8.45% to 8.40%.

Three-month MCLR: Reduced from 8.65% to 8.60%.

Six-month MCLR: Reduced from 8.90% to 8.85%.

One-year MCLR: Reduced from 9.05% to 9.00%.

The Bank of India also made a decision.
Bank of India has also reduced MCLR by 5 basis points for all periods. These new rates are effective from July 1, 2025.

One day, MCLR: Reduced from 8.15% to 8.10%.
One-month MCLR: reduced from 8.45% to 8.40%.
Three-month MCLR: reduced from 8.60% to 8.55%.
Six-month MCLR: reduced from 8.85% to 8.80%.
One-year MCLR: reduced from 9.05% to 9.00%.
Three-year MCLR: reduced from 9.20% to 9.15%.

Customers will benefit
The reduction in interest rates by these banks will reduce the burden of EMI. This is especially good news for those taking home loans and auto loans. After the reduction in repo rate by RBI, this step of the banks is important in the direction of accelerating the economy and giving relief to the customers.

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