Indian Overseas Bank has lowered its Repo Linked Lending Rate (RLLR) by 25 basis points, a move that directly benefits borrowers starting April 12, 2025.

Rate Cut Follows RBI’s Policy Shift

This rate reduction comes on the heels of the Reserve Bank of India’s (RBI) decision to ease its Policy Repo Rate from 6.25% to 6%. The change, announced during the latest Monetary Policy Committee meeting, reflects the central bank’s response to growing global uncertainties.

One major factor prompting the RBI’s shift: rising trade tensions. Just last week, U.S. President Donald Trump imposed steep 27% tariffs on Indian imports, rattling economic forecasts. In response, Indian financial institutions are adjusting their rates to help stabilize domestic borrowing conditions.

Immediate Impact for Borrowers

The Chennai-headquartered Indian Overseas Bank confirmed that its Asset Liability Management Committee met on April 11 and approved the rate change. As a result, the bank’s RLLR has been cut from 9.10% to 8.85% — effective immediately from April 12.

This reduction aligns with the bank’s strategy to pass on the benefits of the RBI’s policy move to customers. For borrowers, especially those with loans linked to repo rates, this means slightly lower EMIs and potentially more affordable credit access.

As the banking sector adjusts to the evolving monetary landscape, further shifts in lending rates could follow if macroeconomic pressures persist or intensify.