Data
How much interest Banks charged on Loans in June 2025? Check Here
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The Reserve Bank of India (RBI) has released data for June 2025 showing the lending and deposit interest rates of Scheduled Commercial Banks (SCBs). This data does not include regional rural banks (RRBs) or small finance banks (SFBs).
The data explains how interest rates have changed for loans given by banks (lending rates) and for money deposited by customers (deposit rates) during May 2025, based on information collected during June 2025.
Lending Rates (Interest Banks Charge on Loans)
- Average interest rate on new rupee loans:
- In May 2025, the average interest rate banks charged for new rupee loans was 9.20%.
- This is slightly lower than 9.26% in April 2025, meaning new loans became a bit cheaper.
- Average interest on existing (outstanding) rupee loans:
- This was 9.69% in May 2025, just below 9.70% in April 2025.
- This indicates minor relief for borrowers with older loans.
- 1-Year Median MCLR (Marginal Cost of Funds Based Lending Rate):
- This rate, which banks use to decide interest for many loans, dropped from 8.95% in May to 8.90% in June 2025.
- A lower MCLR helps in reducing loan interest for MCLR-linked borrowers.
- Type of Loans by Benchmark:
- Loans linked to External Benchmarks (like repo rate) made up 61.6% of all floating rate loans as of March 2025 (up from 60.6% in December 2024).
- Loans linked to MCLR made up 34.9% (slightly down from 35.9% in December 2024).
- This shows a shift towards external benchmark-linked loans, which move more directly with RBI policy rates.
Deposit Rates (Interest Banks Pay to Customers)
- Average interest on new rupee term deposits:
- Banks paid 6.11% on average for new term deposits in May 2025, compared to 6.34% in April.
- This means new fixed deposits earned slightly lower interest in May.
- Average interest on existing rupee term deposits:
- For existing deposits, banks paid an average interest of 7.07% in May 2025, down slightly from 7.10% in April 2025.