Bank of Baroda

Bank of Baroda Slashes Loan Rates After RBI Repo Cut: EMIs to Fall from June 7

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Bank of Baroda
In a move that brings welcome relief to borrowers, Bank of Baroda has announced a reduction in its loan interest rates following the Reserve Bank of India’s latest monetary policy decision. The state-run bank has cut its Repo Linked Lending Rate (RLLR) by 50 basis points (0.50%), lowering it from 8.65% to 8.15%. This revision came into effect from June 7, 2025, and is expected to ease the EMI burden for both new and existing borrowers.

What Triggered the Rate Cut?

The Reserve Bank of India recently reduced its repo rate—the rate at which it lends to commercial banks—from 6.00% to 5.50%, signaling a more accommodative stance on monetary policy. Along with this, the Cash Reserve Ratio (CRR) was also slashed by 100 basis points to 3%. These measures are aimed at injecting liquidity into the financial system and stimulating economic activity.

With cheaper funds now available to banks, Bank of Baroda is among the first to pass on the benefits to customers by reducing loan rates. Other government and private sector banks are expected to follow suit in the coming weeks.

What This Means for Borrowers

If you have taken a home loan, personal loan, or auto loan from Bank of Baroda—or are planning to—this is good news. The revised rate directly translates into lower EMIs. For example, a ₹30 lakh home loan taken for 20 years could see a monthly EMI reduction of around ₹900–1,100 depending on the loan terms.

This move is likely to benefit:

  • Salaried individuals

  • Self-employed professionals

  • First-time borrowers

  • Retirees seeking loans

  • Young professionals planning long-term investments

Bank’s Financial Performance: A Strong Quarter

Bank of Baroda’s decision comes on the heels of a robust Q4 performance. The bank reported a net profit of ₹5,048 crore for the March 2025 quarter—3.2% higher than the same period last year and well above the estimated ₹4,800 crore projected by analysts.

The strong showing was largely driven by a 24% jump in Other Income, which rose to ₹5,210 crore. However, the Net Interest Income (NII) stood at ₹11,019 crore—slightly below expectations of ₹11,678 crore—indicating some margin compression in core lending operations.

Improvement in NPA Levels

The bank’s asset quality has also improved, a key indicator of loan repayment health among borrowers. Gross Non-Performing Assets (NPA) declined from 2.43% to 2.26%, while Net NPA dipped slightly from 0.59% to 0.58%. This suggests that the bank is not only issuing loans more prudently but also seeing better repayment behavior from borrowers.

Final Word for Consumers

For customers considering big-ticket purchases like a home, car, or business investment, this could be a golden opportunity. Lower interest rates mean smaller monthly payments, making loans more affordable across all categories.

Those looking to take advantage should visit the Bank of Baroda website or their nearest branch to explore new loan offers, check eligibility, and calculate potential EMI savings.

With interest rates trending downward and the banking environment more favorable, this may be the perfect time to make that long-awaited financial move.

Author Profile

Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.