After RBI’s Repo Rate Cut, PNB Lowers RLLR by 0.50%

Following the Reserve Bank of India’s (RBI) decision to reduce the repo rate by 50 basis points (bps) to 5.5%, Punjab National Bank (PNB) has announced a 0.50% cut in its Repo Linked Lending Rate (RLLR). This new rate will come into effect from June 9, 2025.

This means home and car loans will now become cheaper, resulting in lower EMIs for borrowers. The RBI also cut the Cash Reserve Ratio (CRR) to increase liquidity, enabling banks to lend more easily and affordably.

After the interest rate revision, PNB announced that home loan interest rates will now start from 7.45% per annum. This is great news for:

• New home loan applicants

• Existing borrowers whose interest rate is linked to the repo rate

They will benefit from reduced EMIs, making homeownership more affordable.

It’s not just home loans—vehicle loans from PNB will now start from 7.80% per annum. So, if you’re planning to buy a new car or bike, now could be the perfect time.

With reduced interest rates:

• Monthly EMIs will drop

• Total loan repayment amount will be lower

The Monetary Policy Committee (MPC) of the RBI didn’t just lower the repo rate—it also reduced the CRR by 100 bps to 3%. This means:

• Banks are now required to keep less money as reserve

• More funds are available for lending

• Cash flow in the market increases

This step is aimed at boosting economic activity, encouraging more people to borrow and spend.

This is the third repo rate cut by the RBI in 2025, a move that:

• Helps control inflation

• Makes loans cheaper

• Increases market demand

• Strengthens investor confidence

With PNB leading the way, other public sector banks may soon follow by cutting their loan interest rates too.

If you’ve been planning to buy a home or a car, this is the perfect opportunity to grab a loan at reduced interest rates. With EMIs becoming lighter, more liquidity in the system, and inflation under control, the economy seems to be moving in the right direction.