SBI Keeps Home Loan Rates Stable in May 2025 After April Rate Cut:

SBI Keeps Home Loan Rates Stable in May 2025 After April Rate Cut State Bank of India (SBI), the country's largest public sector lender, has decided to maintain its benchmark lending rates stable for May 2025. These are both the Marginal Cost of Funds Based Lending Rate (MCLR) and the external benchmark-based ones such as the Repo Linked Lending Rate (RLLR). This is after an April 2025 reduction in lending rates by 0.25%, following the Reserve Bank of India (RBI) lowering the repo rate by 25 basis points in its monetary policy review. SBI reduced its external benchmark-based loan rates by up to 0.25% in April 2025 in tandem with the central bank's easing of monetary policy. The new rates applied from April 15, 2025.

Latest SBI External Benchmark Rate (EBR)

From April 15, 2025, SBI’s External Benchmark Rate (EBR) stands at 8.65%. The EBR is used by the bank to determine interest rates on various floating rate loans, including home loans. It is made up of two components:

• RBI Repo Rate: 6.00%
• Bank’s Spread: 2.65%

Thus, EBR = 6.00% + 2.65% = 8.65%

Home Loan Rates Based on External Benchmark Lending Rate (EBLR)

SBI’s EBLR is also pegged to the RBI’s repo rate, with an additional Credit Risk Premium (CRP) and Business Strategy Premium (BSP) depending on the borrower's creditworthiness and loan product. As of April 15, 2025, the EBLR is set at 8.65%, calculated as:

• Repo Rate: 6%
• Spread (CRP + BSP): 2.65%
• Total = 8.65%

Repo Linked Lending Rate (RLLR)

The bank’s RLLR also follows the RBI’s repo rate, plus a credit risk premium. The latest RLLR, effective from April 15, 2025, is 8.25%, comprising:

• Repo Rate: 6%
• Credit Risk Premium: 2.25%

SBI MCLR – May 2025

There have been no changes to SBI’s MCLR for May 2025. The latest MCLR across different tenures is as follows:

Tenor	Existing MCLR (%)	Revised MCLR (%)
Overnight	8.20	8.20
One Month	8.20	8.20
Three Months	8.55	8.55
Six Months	8.90	8.90
One Year	9.00	9.00
Two Years	9.05	9.05
Three Years	9.10	9.10

• Overnight & One-month MCLR: 8.20%
• Three-month MCLR: 8.55%
• Six-month MCLR: 8.90%
• One-year MCLR: 9.00%
• Two-year MCLR: 9.05%
• Three-year MCLR: 9.10%

Understanding MCLR

Marginal Cost of Funds Based Lending Rate (MCLR) is a benchmark upon which banks fix interest rates for floating-rate loans such as home, vehicle, and personal loans. Sliding MCLR is likely to lower Equated Monthly Installments (EMIs) or decrease the tenor of loans for the borrower. However, from October 1, 2019, banks have considerably shifted towards lending loans on the basis of external benchmarks rather than MCLR.

Current SBI Home Loan Interest Rates

SBI home loan rates range from 8% to 8.95%, depending on the borrower's CIBIL score. For SBI Home Loan Maxgain Overdraft (OD) accounts, the rates would be 8.25% to 9.15%. For top-up loans, the rates would be 8.30% to 10.80%. All these rates are effective from April 15, 2025. In all, the constant lending rates in May 2025 represent a time of stability after the rate modifications in April to create a predictable lending environment for borrowers.