Union Bank, IOB Cut Loan Interest Rates by 0.50%

On June 11, public sector banks—Union Bank of India, Canara Bank, and Indian Overseas Bank (IOB)—announced a 0.50% cut in lending interest rates. This decision comes after the Reserve Bank of India (RBI) reduced the repo rate by 0.50%, bringing it down to 5.5%.

Alongside the repo rate cut, RBI also reduced the Cash Reserve Ratio (CRR) by 1%, lowering it to 3% to encourage lending and economic activity.

Union Bank Reduces EBLR and RLLR

Union Bank of India has lowered its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 0.50%. The revised rates are now in line with RBI’s updated repo rate, offering cheaper loans to consumers.

IOB Cuts RLLR to 8.35%

Indian Overseas Bank’s Asset Liability Management Committee (ALCO) decided to reduce the repo-linked lending rate by 0.50%, dropping it from 8.85% to 8.35%.

Canara Bank Updates Repo-Based Rates

Canara Bank has also reduced its repo-based interest rate by 0.50%, from 8.75% to 8.25%. The new rates will be effective starting Wednesday, benefiting retail and MSME borrowers alike.

This rate reduction will make home, vehicle, personal, and MSME loans cheaper for both new and existing customers.

Other Banks Follow the Trend

Earlier, Bank of Baroda (BoB) had also slashed its RLLR by 0.50%. In the private sector, HDFC Bank has adjusted its Marginal Cost of Funds-based Lending Rate (MCLR) by 0.10% across various tenures, benefiting borrowers linked to that benchmark.