Lower lending rates to follow? Banks currently charge these interest rates on home loans

Core Viewpoint - The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points from 5.5% to 5.25%, encouraging banks to reduce their lending rates, particularly for long-term loans like home loans [1] Summary by Category Monetary Policy Impact - The repo rate cut is expected to influence banks to lower their lending rates, especially for home loans linked to the external benchmark [1] - Loans linked to MCLR may not see a proportional reduction, as a 25 basis point cut could result in only a 10 basis point decrease in some cases [2] Home Loan Interest Rates by Banks - HDFC Bank: Current rates are 7.90% to 13.20%, expected to adjust to 7.65% to 12.95% after the repo rate cut [3] - ICICI Bank: The external benchmark lending rate (EBLR) is currently 9.20%, with new rates likely to be lower; current interest rates range from 8.75% to 9.80% [3] - Kotak Mahindra Bank: Home loan rates are 7.99% to 12% for salaried individuals and 7.99% to 13.30% for self-employed individuals [4] - Axis Bank: Charges 8.35% to 9.10% for borrowers with a Cibil Score of 751 and above, and 8.60% to 9.35% for those below 750 [4] State Bank Interest Rates - State Bank of India (SBI): Current home loan rates are 7.5% to 8.7%, based on an EBLR of 8.15% [6] - Union Bank of India: Home loan rates range from 7.45% to 10%, based on an EBLR of 8.25% [6] - Canara Bank: Charges interest rates from 7.40% to 10.25%, with an EBLR of 8.25% [6] Summary of Interest Rates - A table summarizing the interest rates charged by various banks shows the range of rates applicable based on the repo rate of 5.5% [5]