SBI Reduces Lending Rate by 25 Basis Points

After the RBI reduced the repo rate by 25 basis points, the State Bank of India also dropped its lending rates by 25 basis points. Its External Benchmark Based Lending Rate(EBLR) is reduced to 8.65% from 8.90%. The new rates are effective from today, i.e., April 15, 2025.

SBI has also brought changes to its repo-linked lending Rate (RLLR). Earlier, this rate stood at 8.50%. From April 15, the rate is revised to 8.25%. However, this does not include the credit risk premium (CRP), which is added to calculate the RLLR.

The Reserve Bank of India (RBI) has cut the repo rate by 0.25% for the second time in the latest Monetary Policy Committee (MPC) meeting, which ended on April 9, 2025. With this move, the current repo rate now stands at 6.25%.

A drop in the repo rate usually leads to lower EMIs, especially for those who have taken loans on a floating interest rate. That’s because most Indian banks use the repo rate as an external benchmark to decide their own lending rates.

As per SBI’s website, when the benchmark rate changes, the interest rate in the home or home-related loan account will also change. Therefore, if the repo rate goes up, your home loan interest rate will also increase, resulting in higher EMIs.

No changes are made to the Marginal Cost of Funds Based Lending Rate (MCLR). SBI’s one-year MCLR stands at 9%, while the three-year MCLR rate is 9.10%. These rates will continue to be the same.