New Delhi: Canara Bank, Union Bank and Indian Overseas Bank (IOB) have announced reduction in their lending rates following the Reserve Bank of India’s (RBI) announcement cutting the repo rate by 50 basis points, from 6.00% to 5.50%, in the latest Monetary Policy Committee (MPC) meeting.

Canara bank has reduced Repo Linked Lending Rate (RLLR) from 8.75 % to 8.25 % (applicable on its assets portfolio linked to External Benchmark rate). The revised lending rates will be effective from 12 June 2025, said Canara Bank. 

“The RLLR has been reduced by 0.50% (50 basis points), directly reflecting the decrease in the RBI’s repo rate. This move will lower borrowing costs for customers with loans linked to RLLR. Depending on their loan terms, customers may benefit from reduced EMIs (Equated Monthly Instalments) or a shorter loan tenure. Canara Bank, with a commitment to provide better banking experience to its customers, has offered the due benefits to borrowers by reducing RLLR,” the bank said in a statement.

Union Bank and Indian Overseas Bank Hhave also announced a downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points.