News | 📊 Lending Rate Trends April 2025: Major Indian Banks Adjust Interest Rates Post-RBI Policy Shift

📊 Lending Rate Trends April 2025: Major Indian Banks Adjust Interest Rates Post-RBI Policy Shift

News

15 April 2025

2 min read

UBS Forums

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With the Reserve Bank of India maintaining a dovish stance in its recent monetary policy, several leading banks have revised their lending rates for April 2025. This move comes as part of broader efforts to stimulate credit demand and support economic growth.

🔹 Key Lending Rate Updates:

According to The Economic Times, HDFC Bank, SBI, Bank of Baroda, Canara Bank, and Bank of India have adjusted their Marginal Cost of Funds-Based Lending Rates (MCLR) and repo-linked lending rates in line with market dynamics and borrowing trends.

HDFC Bank now offers a 1-year MCLR of 9.30%, the highest among the private sector leaders.
SBI, India’s largest lender, offers a 1-year MCLR at 9.00%, with overnight rates at 8.20%.
Bank of Baroda, Canara Bank, and Bank of India have also made modest revisions, with 1-year MCLR rates hovering around the 9.00%–9.10% mark.

🔹 Most Affordable Home Loans:

As per Upstox, Union Bank of India, Bank of Maharashtra, and Central Bank of India currently offer the lowest repo rate-linked home loan rates starting at 8.10% p.a..

Other competitive lenders include:

Canara Bank and Bank of Baroda at 8.15%
SBI and Punjab & Sind Bank at 8.25%

These rates are particularly favorable for new borrowers with strong credit profiles, offering opportunities to reduce overall interest burden amid easing inflation concerns.

📌 Outlook: Banking analysts expect further rationalization in retail loan rates if the inflation trajectory remains benign and liquidity remains stable. Consumers planning home or personal loans should closely monitor rate movements to lock in favorable terms.

References:
The Economic Times – Lending Rates April 2025
Upstox – Home Loan Rates April 2025