Impact of RBI Repo Rate Cut: PNB Reduces Home Loan Rate to 8.10% – Will Your EMI Decrease?

PNB Home Loan Rate 2025

RBI Repo Rate Cut Impact: State-owned Punjab National Bank on Saturday (December 6) said it has revised its Repo Linked Lending Rate (RLLR) after the RBI cut the repo rate on December 5, 2025.

The revision follows RBI’s announcement to cut the repo rate by 25 bps to 5.25 per cent from 5.50 per cent in the December MPC.

The bank has reduced its RLLR from 8.35% (including a 10 bps BSP) to 8.10% (including a 10 bps BSP), effective December 6, 2025. PNB also clarified that its Marginal Cost of Lending Rate (MCLR) and Base Rate remain unchanged.

Meanwhile, Bank of India and Indian Bank have also updated their home loan interest rates. Indian Bank announced a cut in its repo-linked benchmark lending rate to 7.95% from 8.20%, with the revised rates coming into effect from December 6.

Will It Impact Your Current EMI?

If your home loan is RLLR-linked, the reduction will typically reflect in your EMI or loan tenure at the next interest rate reset date set by the bank.

However, if your loan is linked to MCLR or Base Rate, your EMI will not change for now, as PNB has kept both rates unchanged.

But for new home borrowers, the rate of interest will be charged at the revised 8.10%, making borrowing slightly cheaper.