Business • Jun 12, 2025

Major interest rate cuts announced by 3 banks

Good news if you're thinking about a loan—major public sector banks like Union Bank of India, Canara Bank, and Indian Overseas Bank have cut their interest rates by up to 0.50%. This comes right after the Reserve Bank of India lowered its repo rate by 0.5%, aiming to make borrowing easier for everyone.

TL;DR

Rates slashed across the board

Union Bank has dropped both its EBLR and RLLR by 0.50%. Indian Overseas Bank's RLLR now stands at 8.35%, while Canara Bank has brought theirs down to 8.25% and also trimmed its MCLR across all loan tenures.

Cheaper loans ahead

Lower rates mean cheaper loans—whether it's for a new car, your first home, or even starting up something on your own. The RBI hopes these cuts will help more people access credit and give the economy a little boost when things are slow.