KEY HIGHLIGHTS
- PNB has cut its Repo Linked Lending Rate (RLLR) by 25 bps.
- Home loan EMIs linked to repo rate are likely to reduce soon.
- Rate relief depends on your loan’s reset cycle; impact may show from January.
PNB made a fresh move right after the RBI’s latest policy decision, and it’s something every home loan borrower should look at closely.
Because when the repo rate drops, the real paisa-vasool moment usually comes from your EMI going down.
PNB has now reduced its Repo Linked Lending Rate from 8.35% to 8.10%, effective immediately.
This came just a day after the RBI cut its repo rate by 25 bps in its December MPC meeting.
Summary Table — What Changed and What It Means
| Bank / Parameter | Previous Rate | New Rate | Change | EMI Impact |
|---|---|---|---|---|
| PNB RLLR | 8.35% | 8.10% | -25 bps | EMI to reduce after reset cycle |
| RBI Repo Rate | 5.50% | 5.25% | -25 bps | Cheaper loans across banks |
| PNB MCLR | Unchanged | Unchanged | No change | No impact on MCLR loans |
| Indian Bank RLLR | 8.20% | 7.95% | -25 bps | EMI relief for Indian Bank borrowers |
| Reset Cycle for RLLR Loans | Every 3 months | Same | — | Rate cut applies on next reset |
Why Did PNB Cut Rates Now?
The RBI’s six-member Monetary Policy Committee voted unanimously to reduce the repo rate to 5.25%.
Since most retail home loans today are linked to the repo rate, banks generally pass on the change quickly.
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PNB responded within 24 hours and confirmed the revision through a stock exchange filing dated 6 December 2025.
The bank also clarified one key thing:
MCLR and Base Rate remain unchanged.
So only customers on RLLR/floating repo-linked loans will benefit.
What Does This Mean for Your EMI?
If your home loan is tied to RLLR, your interest rate will go down by 25 basis points.
But here’s the thing most borrowers forget — the reset date.
RLLR-based loans reset every three months.
So, if your last reset happened in October, your new reduced rate will apply from January 2026.
Lower rate = lower EMI OR same EMI with shorter tenure.
Most banks reduce the EMI unless you request a tenure correction.
Other Banks Are Also Cutting Rates
PNB isn’t alone.
Indian Bank cut its repo-linked benchmark rate from 8.20% to 7.95%.
Bank of India has also made similar downward adjustments.
This trend usually continues for a few weeks as banks reprice their products after RBI announcements.
What Exactly Is RLLR?
Think of RLLR as a floating interest rate directly connected to the RBI repo rate.
If RBI increases repo, your rate goes up.
If RBI cuts repo, your rate goes down.
After an RBI circular in October 2019, all banks were required to link retail loans to an external benchmark.
Most chose the repo rate because it’s transparent and changes quickly.
So when you hear “RLLR cut”, it simply means your home loan interest will adjust in line with RBI’s action.
