Soon after the Reserve Bank of India (RBI) lowered the key repo rate by 25 basis points, state-owned banks have started cutting lending rates, including home loans.

Punjab National Bank said in a regulatory filing that it has lowered its RLLR from 8.35% to 8.10%, including a BSP of 10 basis points. The revision has come into effect from 6 December, a day after the RBI cut the key repo rate to 5.25%.

Bank of India and Indian Bank also announced a drop in their lending rates. The revision will bring down interest rates on long-duration lending, including home loans, resulting in lower EMIs for borrowers.

PNB said the marginal cost of lending rate (MCLR) and base rate, however, remain unchanged.

Indian Bank cut its repo-linked benchmark lending rate from 8.20% to 7.95%.

Bank of India also reduced its repo-based lending rate by 25 basis points to 8.10%.

Home loan interest rates can be fixed or floating. Borrowers having home loans directly linked to the repo rate will stand to benefit. A majority of home loans fall under this category.