IOB cuts lending rates to pass on RBI’s repo reduction

New Delhi: Indian Overseas Bank (IOB) has announced a reduction in its key lending rates, effective December 15, 2025, following the recent repo rate cut by the Reserve Bank of India (RBI) during the Monetary Policy Committee (MPC) meeting.

PSU Watch is now on Whatsapp Channels. Click here to join

In a move to fully transmit the policy easing to customers, the bank has reduced its External Benchmark Lending Rate (EBLR), specifically the Repo Linked Lending Rate (RLLR), by 25 basis points—from 8.35 percent to 8.10 percent.

Additionally, the bank’s Asset Liability Management Committee (ALCO) has approved a 5 basis point reduction in the Marginal Cost of Funds Based Lending Rate (MCLR) across all tenors ranging from three months to three years.

According to IOB, the revisions will reduce Equated Monthly Instalments (EMIs) for both existing and new borrowers with loans linked to these benchmarks. The rate cuts are expected to enhance affordability for retail customers availing home, vehicle and personal loans. MSMEs and corporate borrowers will also benefit from a lower cost of funds, supporting their working capital needs and facilitating business expansion.

With this downward revision in lending rates, IOB aims to stimulate credit demand and further strengthen economic activity across key sectors.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)