Indian Bank slashes interest rates on home, vehicle loans

Image used for representative purpose only.
| Photo Credit: Reuters

Public sector Indian Bank has slashed the interest rates on home and vehicle loans to 7.90 per cent and 8.25 per cent, respectively, the bank said on Friday (April 25, 2025).

The decision by the city-headquartered bank to cut rates comes in the backdrop of the Reserve Bank of India’s Monetary Policy Committee reducing the short-term lending rate by 25 basis points to 6% on April 9. A similar reduction was made in February.

In a press release on Friday, Indian Bank said, “In light of the recent policy move by the Monetary Policy Committee of the Reserve Bank of India, Indian Bank has lowered its home loan interest rates from the existing 8.15% per annum to 7.90% per annum and vehicle loan interest rates from the existing 8.50% to 8.25% per annum.”

This reduction aims to provide relief to borrowers by lowering EMIs and promoting affordable access to credit.

“In addition to the reduced interest rates, Indian Bank is also offering benefits such as discounted processing fees and zero documentation charges. This initiative reflects Indian Bank’s commitment to providing its customers with accessible and user-friendly financing options,” the statement added.