SBI and IOB make loans a bit cheaper—here's what's up

Business Dec 15, 2025

Good news if you've got a loan or are planning to get one: State Bank of India (SBI) and Indian Overseas Bank (IOB) just lowered their lending rates, following the RBI's recent rate cut.
Starting December 15, IOB is dropping its repo-linked lending rate to 8.10%, while SBI is cutting its external benchmark rate to 7.90%.
Both banks are also trimming their MCLR by five basis points.

How this actually helps you

These cuts mean your EMIs for things like home, car, or personal loans could go down a little—making repayments easier on your wallet.
The idea is to pass on the RBI's benefits directly to borrowers and help lower borrowing costs across the board.