Mumbai: The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points, bringing it down from 6.25 per cent to 6.00 per cent. This decision was made by the RBI’s Monetary Policy Committee (MPC) during its meeting held between April 7 and April 9, 2025. The cut is part of the central bank’s effort to boost borrowing and support economic growth.
IOB Responds with Lower Lending Rate
Following the RBI’s move, Indian Overseas Bank (IOB) has also announced a 25 basis point cut in its External Benchmark Lending Rate (EBLR). The bank’s Repo Linked Lending Rate (RLLR) will now be 8.85 per cent, down from 9.10 per cent. The change will take effect from April 12, 2025.
This decision was made after careful consideration by IOB’s Assets and Liabilities Management Committee (ALCO).
What This Means for Borrowers
This change will benefit customers who have loans tied to the repo rate. Home loans, auto loans, and other types of credit will now become cheaper, leading to lower monthly EMIs.
Existing borrowers will see some relief in their repayments, while new borrowers can enjoy more affordable credit options. IOB's move may also prompt other banks to follow suit and revise their rates.
Supporting Economic Growth
IOB’s rate cut shows the bank’s commitment to passing on the RBI’s policy benefits to customers. The goal is to make credit easier and more affordable, which in turn can encourage more people to borrow and spend, helping the economy grow.
