SBI cuts lending rates, home loan EMIs set to fall
What's the story
The State Bank of India (SBI) has announced a reduction in its lending rates across various benchmarks, including the Marginal Cost of Funds-based Lending Rate (MCLR), External Benchmark Lending Rate (EBLR), and Repo Linked Lending Rate (RLLR). The changes will come into effect from December 15, 2025. The move comes after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points last week.
Rate adjustments
SBI's MCLR rates revised across tenors
SBI has revised its MCLR rates across various tenors, resulting in a marginal reduction for borrowers. The overnight and one-month MCLR rates have been reduced from 7.9% to 7.85% each, while the three-month rate has been cut from 8.3% to 8.25%. The six-month MCLR now stands at 8.6%, down from the previous level of 8.65%. Longer tenors have also witnessed similar cuts with one-year benchmark rate being slashed from 8.75% to an updated value of 8.7%.
Benchmark changes
SBI's EBLR and RLLR rates revised
SBI has also revised its EBLR and RLLR rates, effective December 15. The new structure sees EBLR reduced from 8.15% + Credit Risk Premium (CRP) + Bank Spread (BSP) to a lower 7.9% + CRP + BSP. This marks a reduction of 25 basis points in the benchmark component of the rate. Meanwhile, RLLR has been cut from 7.75% + CRP to a lower value of 7.5% plus applicable credit risk premium (CRP).
Additional changes
SBI's BPLR and base rate revised
In addition to the MCLR, EBLR, and RLLR adjustments, SBI has also revised its Benchmark Prime Lending Rate (BPLR) and Base Rate. The new BPLR stands at 14.65% per annum while the Base Rate has been adjusted to 9.9%. These changes are part of SBI's effort to pass on the benefits of RBI's repo rate cut to its customers across retail and corporate segments alike.