20,00,000 people visited this section in last 30 daysApply Online

Get Cashback of Upto ₹ 1,000* on Home Loan Apply Online

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Repo Linked Home Loan

Home Loan Interest Rates Linked to Repo Rate

Last Updated 21st Jan 2022

Interest Rate 6.50% onwards
Maximum Loan Tenure 30 years
Prepayment charges Nil on floating interest rates
Maximum Loan Amount Up to 90% of property value
Lowest EMI Per Lakh ₹ 629 for 30 years
  • Check Best Offers starting @ 6.50%*
  • Home Loan rates linked to RBI’s benchmark repo rate
  • After RBI’s guidelines for Repo Rate Linked Home Loans, banks have come out with low rate home loan schemes linked to Repo Rate.
  • Top Banks offering Repo Rate Linked Home Loan are SBI, PNB, ICICI Bank, Axis Bank, Bank of Baroda
Apply for Home Loan @ 6.50%* Get upto ₹ 1,000* Cashback

Compare Repo Rate Home Loan Interest Rates

Bank Home Loan Rate Processing Fee
SBI Home Loan
6.65% 0.40% Min ₹ 1,000 - Max
Bank of Baroda Home Loan
6.50% Min ₹ 7,500
ICICI Bank Home Loan
6.70% 0.25% Min ₹ 3,000 - Max ₹ 5,000
Axis Bank Home Loan
6.65% 0.20% Min ₹ 2,021 - Max ₹ 25,000
Kotak Bank Home Loan
6.55% Max ₹ 10,000
Syndicate Bank
6.95% 0.13% Min ₹ 500 - Max ₹ 5,000
IDFC First Bank
6.50% Min ₹ 10,000
UCO Bank
6.90% 0.50% Min ₹ 1,500 - Max ₹ 15,000
Punjab and Sind Bank
8.05% 0.25% Min ₹ 1,000 - Max ₹ 15,000
Jammu And Kashmir Bank
7.20% 0.25% Min ₹ 500 - Max ₹ 10,000
6.75% 0.50% Min ₹ 2,500
Dhan Laxmi Bank
7.85% 1.00% Min ₹ 10,000
Central Bank of India
6.85% 0.50% Max ₹ 20,000
Bank of India
6.50% 0.25% Min ₹ 1,500 - Max ₹ 20,000
Allahabad Bank
8.25% 0.40% Max ₹ 50,000
United Bank of India
6.95% 0.59% Min ₹ 1,180 - Max ₹ 11,800
7.35% 0.50% Max ₹ 20,000
Karur Vysya Bank
7.15% Min ₹ 5,000
Indian Overseas Bank
7.05% 0.53% Min ₹ 8,900 - Max ₹ 13,350
6.45% 1.00% Max ₹ 10,000
DBS Bank
7.30% Max ₹ 10,000
Canara Bank
6.90% 0.50% Min ₹ 1,500 - Max ₹ 10,000
6.80% 0.35% Min ₹ 2,500 - Max ₹ 15,000
Union Bank of India
8.25% 0.50% Max ₹ 15,000
South Indian Bank
8.05% 1.00% Max ₹ 10,000
Lakshmi Vilas Bank
9.70% 0.40% Min ₹ 10,000 - Max ₹ 20,000
Karnataka Bank
8.55% 0.25% Min ₹ 250
Indian Bank
7.55% 0.23% Max ₹ 20,381
Federal Bank
7.65% 0.50% Min ₹ 3,000 - Max ₹ 7,500
Corporation Bank
6.80% 0.50% Max ₹ 50,000
Bank of Maharashtra
6.90% 0.25%
Andhra Bank
6.85% 0.50% Max ₹ 10,000

Repo-Linked Home Loan

Repo Rate linked Home Loan is the new home loan scheme introduced by banks as per the regulation by RBI. Under this scheme, home loan rate of interest for floating loans are benchmarked to the repo rate instead of MCLR (Minimum Cost to Lending Rate). Repo rate is the interest rate at which the Reserve Bank of India lends money to commercial banks against government securities. On 08th Dec 21, Reserve Bank of India changed the Repo Rate to 4.00%.

Key Points :

  • If you are an existing borrower of home loan and your bank has introduced repo rate linked home loan then you have the option to move your home loan from MCLR based to repo rate based. RBI has instructed banks to allow borrowers to transfer from MCLR based loan to Repo Rate Loan, with no additional spread or margin. However, to shift the borrower may be required to pay some administrative charges depending upon the policy of the bank.
  • The loans availed under Repo Rate Linked Home Loan Scheme will be subject to change of interest whenever there is a change in the Repo Rate.
  • Banks can charge a spread over the Repo Rate to cover for their various costs and this spread can be different for different banks. However, once fixed at the time of taking a loan, the spread remains fixed for the entire loan tenure. Banks can change the spread only in exceptional circumstances like when the credit profile of the borrower changes or the operating cost structure of the bank undergoes significant changes


  • Income : Minimum Net Monthly income required is ₹ 25,000.
  • Age : Minimum age of the salaried applicant has to be above 18 years.
  • Employment : The minimum continuous employment required is 1 year in the same organization. The minimum employment for self-employed is 3 years of continuous involvement in the same business.
  • Loan Quantum : The minimum loan amount for a Repo Rate linked home loan is ₹ 3 Lakh.
  • Tenure : Maximum tenure of the repo rate linked home loan is 30 years and this varies from bank to bank.
  • Loan to Property Value Ratio : The loan cap varies between 75-90%, based on loan amount creditworthiness, repayment capacity and cost of the project.
  • Lowest EMI : The lowest EMI per lakh is for 30 years.
  • Documents Required : Identity proof, Address proof, Property documents, Income proofs.

How does Repo Rate impact Home Loan Rates?

Repo-linked Home Loan depends on RBI's Repo Rate. Home Loan rates that are linked to repo rates are currently composed of repo rate + base spread + additional spread. Like any other floating rate home loans, this loan also has two parameters: the reset frequency of the interest rate on your loan and spread on the benchmark. These two parameters together determine the interest rate you pay on your home loan throughout the loan tenure :

  • Reset Frequency : The maximum reset frequency set by RBI for Repo Rate Linked Home Loan is 3 months. However, the interest rate of your loan will change as per the reset date decided at the time of availing the loan. On that date, the interest rate will be determined based on the latest updated RLLR of the bank from which you have availed the loan.
  • Spread : The next component is spread or the margin that you pay over the RBI's Repo Rate for a home loan. There are two spreads applied on Repo linked home loan i.e. base spread + additional spread. Spread on a home loan is decided as per the loan amount and risk group of the borrower. The margin would be fixed at the time of sanction.
  • When RBI changes its repo rate, the interest rate on your floating rate home loan will also change by the same basis points. Your EMI will change every time there is a change in the repo rate.
  • For instance, if you have taken home loan rate at floating rate of 9% and after 2 months, RBI decides to lower down the Repo Rate by 50 bps. Hence, your home loan floating rate associated with Repo Rate will also come down by 50 bps at a rate of 8.50%. Your EMI will change after 1 month as the reset period of RLLR is 3 months.

What is the difference between Repo Rate and MCLR?

Repo Rate MCLR
External benchmark rate announced by RBI in its bi-monthly monetary policy Internal benchmark rate of banks, as revised by banks from time to time
Current schemes offer a lower rate of interest Rates are comparatively high
Highly transparent, as Home Loan Rate will change by the same quantum as the change in repo rate, as and when revised Less transparent, as banks may or may not decide to revise their MCLR rate by the same quantum as the change in policy rates
The reset frequency under this scheme cannot be more than 3 months The reset frequency under this scheme can be different for each bank and could range from 1 month to a year
Rate change transmission to the borrower is complete and within a maximum of 3 months. Rate change transmission to the borrower may be lesser or higher with varying time period as per the reset period


What is RLLR?

RLLR is Repo Linked Lending Rate. When a bank links its lending rate to Repo Rate, it is considered as Repo Linked Lending Rate. RLLR is a combination of the current repo rate and a mark-up which includes the operating costs and margin of the banks. Bank applies an additional spread over RLLR to arrive at home loan rate.

What is the current repo rate?

Current Repo Rate of RBI is 4.00%, last revised on 08th Dec 21.

What is Repo Rate linked Home Loan?

Repo Rate linked Home Loan is the new Home loan scheme in which home loan rates are linked to repo rate instead of MCLR rates. RBI has made it mandatory for all banks to offer repo rate linked loan for all floating rate loans.

Which banks offer Repo Rate linked loans?

Top banks that offer Repo Rate linked loans are ICICI Bank, Axis Bank, SBI, PNB, Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, DBS Bank, Dhan Laxmi Bank, Federal Bank, HSBC Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Jammu And Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Kotak Bank, Lakshmi Vilas Bank, OBC, Punjab and Sind Bank, South Indian Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, IDFC First Bank

What will happen to Home loan rate if repo rate is increased?

For the first three months, there will be no change in your home loan interest rate. If the repo rate increased at the time of your repricing date, then the interest rate of your loan will also increase.

What will happen if repo rate is decreased?

For the first three months, there will be no change in your home loan interest rate. If the repo rate has been decreased, then your home loan interest rate will also reduce once the reset frequency is over.

Why are repo rate loans cheaper?

Earlier banks used to determine the interest rate for their advances based on the MCLR (Minimum Cost to Lending Ratio). Banks determine MCLR based on marginal cost of funds, negative carry on cash reserve accounts, operating costs, and tenure premium. This would give a minimum rate at which banks can lend.
Whereas in the case of repo rate linked loans, the banks have to take repo rate as a base rate and add a reasonable percentage as spread to cover their costs and make a profit.

Are repo rate linked home loans better than MCLR based loans?

Repo rate home loans are certainly cheaper than MCLR based loans. Also, the effect of change in rate will get reflected on the repo rate loans in a month as compared to MCLR based loans which usually take 1 year as a base. Also, if the repo rate changes by 35 bps, then your interest rate will also change by 35 bps in Repo Rate Linked Home Loan. However, this is not the case with MCLR based Home Loan. In MCLR based loans, banks have no mandatory obligation to change MCLR based on the change in repo rate. Given the current situation of the economy, the repo rate linked home loans are better than MCLR based loans.

Should I transfer my MCLR based home loan to repo rate linked loans?

Before making the decision, you should first evaluate the benefit in the interest rate that you will get by transferring the loan along with the benefit you will get on monthly EMIs. If both the benefits are significant only then you should transfer your loan to repo rate linked home loans.

What is the minimum processing fees of repo rate home loans?

The minimum processing fees of repo rate home loans is 0.13% or ₹ 500 to ₹ 5,000, whichever is lower.

Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.50%. Cashback of up to ₹ 1,000

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000.

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.00% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 6.90%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 7.05%.

    Invest Now
Home Loan News - Jan 2022
  • 2022-01-20 : PFC and REC Reduce Lending rates
    The State-run PFC and REC have reduced their lending rates across all types of loans by 40 basis points (bps). The move will help power utilities raise loans at cheaper rates. Also, the power sector non-banking financial companies (NBFC) have already been offering short term loans at a 6.25 per cent interest rate.
  • 2022-01-20 : Union Lenders Approves Reimbursement Amount of ₹974 cr for Pandemic Loan Moratorium.
    The Union Cabinet has approved a sanction of ₹973.74 crores for lenders to reimburse the loan moratorium. Earlier, on March 27, 2020, the Reserve Bank of India (RBI) had announced a loan moratorium on payment of instalments of term loans falling due between March 1 and May 31, 2020, due to the pandemic, which was extended to August 31.
  • 2022-01-19 : Bajaj Home Finance Revises Home Loan Interest Rates
    Bajaj Home Finance has decreased home loan rates, and as a result, you can avail of a home loan at the lowest rates starting at 6.65%.
  • 2022-01-19 : Bajaj Finance Q3 Net up 84% on Income Growth.
    Bajaj Finance Ltd (BFL) has reported an 84 per cent year-on-year (YoY) jump in third-quarter standalone net profit. The growth has been seen on the back of healthy growth in net interest income, fees and commission income and other operating income.
  • 2022-01-17 : Housing Finance Companies and 8 NBFCs Surrender Certificates of Registration
    Non-Banking Financial Companies and one housing finance company have surrendered their registration certificates to RBI. As a result, they cannot function as NBFCs and HFCs.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Please wait while your information is being processed...