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Indian Bank Cuts RBLR by 35 bps to 8.70% from April 11

10 April 20251 min read
BANKING & FINANCEIndian Bank CutsRBLR by 35 bps to8.70% from April 1110 April 2025safalsetu.com

Why in the news

A public sector lender passed on RBI’s policy easing by trimming its benchmark lending rate.

Key facts

ItemDetail
BankIndian Bank
Old rate9.05%
New rate8.70%
Cut0.35% (35 bps)
EffectiveApril 11

Impact on borrowers

  • Home loans and business loans linked to RBLR benefit.
  • EMIs could fall depending on loan terms and reset periods.
  • Better affordability may support housing and MSMEs.

Why it matters

  • It shows transmission of RBI’s easing to bank lending rates.
  • The aim is to boost credit growth.

Advice to customers

  • Check loan agreements for when the new rate applies.
  • Consider refinancing to gain from lower rates.

Exam angle

  • Related terms: RBLR, repo rate, basis points, EMI.

Test yourself

1. What is Indian Bank's new RBLR after the cut effective April 11?

RBLR was cut from 9.05% to 8.70%.

2. By how many basis points did Indian Bank reduce its RBLR?

The cut was 0.35%, which is 35 basis points.

3. Indian Bank's cut applies to loans linked to which benchmark?

The reduction is in the Repo-Linked Benchmark Lending Rate (RBLR).