IOB Slashes Lending Rates After RBI Repo Cut, Cheaper Loans from April 12

Mumbai: In a significant move that will bring relief to borrowers, Indian Overseas Bank (IOB) has announced a 25 basis point reduction in its lending rate, following the Reserve Bank of India’s (RBI) recent decision to cut the repo rate. The revised rates will come into effect from April 12, 2025, and are expected to make home, auto, and other loans cheaper for customers.

The RBI's Monetary Policy Committee (MPC), during its meeting held between April 7 and April 9, reduced the repo rate from 6.25% to 6.00% in a bid to stimulate borrowing and spur economic growth.

Responding swiftly, IOB has slashed its External Benchmark Lending Rate (EBLR) by 25 basis points. As a result, the bank’s Repo Linked Lending Rate (RLLR) has been revised to 8.85%, down from 9.10%.

According to a statement from the bank, the decision was taken after careful assessment by IOB’s Assets and Liabilities Management Committee (ALCO). The cut aims to ease the financial burden on customers and align with the RBI’s monetary policy measures.

The rate cut will directly benefit borrowers with floating rate loans linked to the repo rate. Monthly EMIs (Equated Monthly Installments) on home loans, car loans, and other credit facilities are expected to decrease, providing relief to existing customers and making loans more affordable for new applicants.

Financial experts believe that this move may prompt other public and private sector banks to follow suit by adjusting their lending rates, thereby improving the overall borrowing environment in the country.

IOB’s decision highlights the bank’s commitment to fostering affordable credit and supporting economic expansion. By making loans cheaper, the bank aims to boost consumer spending and investment, both of which are essential drivers of economic growth.

Customers are advised to contact their respective bank branches or check the official IOB website for updated loan details and EMI calculators.