New Delhi: State-owned Bank of Baroda (BoB) on Friday announced a reduction in its repo-linked lending rates by 25 basis points, shortly after the Reserve Bank of India (RBI) lowered the key policy rate for the first time in six months. The move is expected to make borrowing more affordable for individuals and businesses across the country.
Repo-Linked Lending Rate Reduced
Bank of Baroda’s Baroda Repo Based Lending Rate (BRLLR) will now stand at 7.90% compared to the earlier rate of 8.15%, effective from December 6, 2025, according to a regulatory filing. The rate cut aligns with the RBI’s reduction of the repurchase (repo) rate by 25 basis points to 5.25%, announced earlier on Friday by the six-member monetary policy committee, chaired by RBI Governor Sanjay Malhotra.
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Impact on Borrowers and Economy
With the repo rate cut, banks now have access to cheaper funds, enabling them to lower their lending rates. This step directly benefits borrowers by reducing EMIs on home, auto, and business loans, thus providing a boost to consumer spending and business investments. Analysts expect other lenders to follow suit, adjusting their loan rates to reflect the RBI’s new policy.
The RBI has also committed to injecting ₹1 lakh crore liquidity into the banking system to support a stable “goldilocks” economy amid rising US tariffs on Indian goods. The move complements government efforts, including GST reforms, labor law relaxation, and financial sector support, aimed at sustaining economic growth.
Other Banks Follow the Trend
Earlier this week, Indian Bank trimmed its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points to 8.80% for one-year loans, effective from December 3, demonstrating the immediate ripple effect of the RBI’s decision on state-owned banks.
About Bank of Baroda
Established in 1908, Bank of Baroda is one of India’s largest public sector banks, providing a wide range of banking and financial services across India and internationally. Known for its strong presence in retail and corporate banking, the bank continues to play a significant role in supporting economic growth through accessible credit and innovative financial solutions.
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