New Delhi: In a move aimed at enhancing credit accessibility, Indian Bank has reduced its home loan interest rate to 7.90 per cent and vehicle loan rate to 8.25 per cent per annum.
This decision aligns with the Reserve Bank of India’s (RBI) recent monetary policy adjustment, wherein the repo rate was lowered by 25 basis points to 6 per cent on April 9, 2025 .
The bank’s revised rates mark a decrease from the previous 8.15 per cent for home loans and 8.50 per cent for vehicle loans.
This adjustment is expected to provide relief to borrowers by reducing their Equated Monthly Instalments (EMIs), thereby promoting more affordable access to credit.
In addition to the interest rate cuts, Indian Bank is offering incentives such as discounted processing fees and zero documentation charges.
These measures are part of the bank’s initiative to provide accessible and user-friendly financing options to its customers.
The RBI’s repo rate reduction is the second in recent months, following a similar 25 basis point cut in February 2025.
These policy changes are part of broader efforts to stimulate economic growth by making borrowing more affordable for consumers and businesses alike.
Indian Bank’s rate adjustments are in line with actions taken by other public sector banks. For instance, the State Bank of India (SBI) has revised its home loan interest rates to start from 8.25 per cent .
Similarly, the Bank of Maharashtra has reduced its home loan rates to 8.10% and car loan rates to 8.45 per cent .
These developments indicate a trend among Indian banks to pass on the benefits of the RBI’s policy rate cuts to consumers, thereby fostering a more conducive environment for borrowing and investment.
