Loans Get Cheaper As SBI Slashes Lending Rates By 25 Bps Post RBI Move; Details Inside

The largest public sector bank in the nation, the State Bank of India, has announced a cut in its lending rates by 0.25%. The bank's EBLR (External Benchmark Based Lending Rate), which was previously set at 8.90%, has been changed to 8.65% as of April 15, 2025. Additionally, the bank changed its Repo Linked Lending Rate (RLLR), which was formerly 8.50% and is now 8.25%.

After the RBI lowered repo rates by 0.25% for the second time in a row which is now at now 6.25% at its most recent MPC meeting, which ended on April 9, 2025, SBI took this action. Because EBLR impacts floating-rate loans, such as personal, car, and home loans, SBI borrowers will benefit from lower interest rates or EMIs, while new borrowers will be able to get loans at cheaper rates. Because RLLR is directly linked to the repo, it usually represents a direct transfer of the rate cut to the borrowers and changes instantly or soon after the repo cut. This implies that RLLR-linked loans, like home, car, and personal loans, would become cheaper; therefore, if you are an SBI customer with a floating RLLR loan, your EMI or interest burden will drop.

"EBLR stands for External Benchmark Lending Rate. SBI has adopted Repo Rate as the external benchmark to link its floating rate home loans with effect from 01.10.2019," SBI has mentioned on its website.

"The Monetary Policy Committee, led by Sanjay Malhotra, decided to cut the repo rate by 25 basis points, to 6%. This is the second time the central bank has lowered the repo rate this year. In February, it had previously lowered the key rate to 6.25%. The interest rate that the RBI charges commercial banks on the funds it lends them is called the repo rate, or purchase agreement rate. As a result, banks will be able to lend money to individual clients at reduced interest rates and with cheaper loan EMIs," commented Mr. Puneet Singhania, Director at Master Trust Group, on the impact of repo rate cut on borrowers.

"With inflation staying within the RBI's target and growth showing signs of recovery, this policy direction provides much-needed support to both developers and homebuyers. Lower interest rates directly impact home loan EMIs, which will add impetus to demand for residential real estate. The projected GDP growth of 6.5% for FY26 reflects overall optimism in the domestic economy. We believe this confidence will gradually translate into higher buyer activity and improved project viability," said Amit Jain Chairman and Managing Director of Arkade Developers Limited.

Meanwhile, SBI has also announced an interest rate cut on its fixed deposits of less than Rs 3 Cr. Effective from 15th April 2025, SBI has lowered interest rates by 10 bps on multiple tenures and is now offering interest rates ranging from 3.5% to 6.5%. On a maturity period of 2 years to less than 3 years, SBI is now offering a maximum rate of return of 6.9%, which was 7% previously.