Home Loan Interest Rates In June 2025: SBI, HDFC Bank, PNB, ICICI Bank And Others; Check Latest Rates

Following the conclusion of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting on Friday, the central bank has announced further cuts to the repo rate by 50 basis points, bringing it to 5.5%. RBI Governor Sanjay Malhotra announced the key decisions after the three-day MPC meeting.

This comes after the RBI reduced repo rates by 25 basis points in April, bringing the key lending rate for commercial banks to 6%. With the RBI’s move, the borrowing is set to turn cheaper, which means that EMIs on home and other loans are expected to decrease soon.

After April’s repo rate cut announcement, several banks had revised their interest rates on floating-rate loans, resulting in reduced home loan EMIs. With fresh rate cuts, homebuyers can expect significant relief on their EMIs.

This is because most banks link their lending rates to the repo rate. Hence, whenever the RBI announces a rate cut, the benefit is typically passed on to the customers as the banks receive funds from the RBI at cheaper rates.

The move was made possible because the inflation outlook for the Indian economy has significantly stabilised. When the RBI increases the repo rate, it is done to curb the flow of money in the market by making borrowing expensive. This helps tame inflation.

On Friday, the RBI said that the medium-term outlook for inflation remains soft. It also revised its retail inflation forecast for the current financial year to 3.7%, down from the earlier projection of 4% made in April.

With the rate cuts, economic activity is now expected to pick up significantly, as consumer demand picks up pace.

The home loan rates were updated by various banks following the April MPC meeting. In the coming days, the leading lenders like the State Bank of India, Punjab National Bank, ICICI Bank and HDFC Bank, among others, are expected to revise the home loan and personal loan interest rates further. The banks are expected to reduce the interest rates following the RBI repo rate cut, bringing more relief to consumers.

The interest rates shown in the chart represent a typical range offered by banks. The exact interest rate on your home loan can vary depending on several factors, including the nature of your employment and credit history, among other things.

Disclaimer: To find the latest interest rate, you should check the "Interest Rates" section on the official websites of the banks you are interested in. Interest rates are subject to change without notice, and the rates provided are current as of a specific date.