State Bank of India (SBI) reduces lending rate by 25 basis points following RBI’s repo rate cut, making loans cheaper for borrowers. FD rates also revised.
RBI Repo Rate Cut Impact: State Bank of India (SBI) has announced to reduce its lending rate by 25 basis points, giving cheerful news for existing and new borrowers. The latest the Repo Linked Lending Rate (RLLR) of SBI stands at 8.25 per cent now. Several loans including home, personal and automobile will get cheaper for both existing and new borrowers.
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It comes after the Reserve Bank of India (RBI) in its April MPC meeting announced unanimously to cut the repo rate by 25 bps to 6 per cent from 6.25 per cent amid controlled inflation. RBI also shifted its stance from neutral to accommodative.
SBI has reduced the External Benchmark Based Lending Rate (EBLR) by 25 basis points to 8.65%. The new rates will be effective from April 15, 2025, as per the updated rate information available on the bank’s website.
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How Much Will You Save? Hypothetical Illustration
If you take a Rs 50 lakh home loan from SBI for a period of 30 years at an 8.50% interest rate, your monthly EMI will be around Rs 38,491.
Now suppose, as SBI reduces its home loan interest rate by 25 basis points (i.e., from 8.50% to 8.25%), your new EMI will come down to about Rs 37,598.
This means you’ll save Rs 893 every month on your EMI.
Over a year, this adds up to a saving of Rs 10,716.
While this might look like a small amount monthly, over a 30-year loan period, the total saving would be over Rs 3.2 lakh — all because of just a 0.25% rate cut.
SBI Cuts FD Interest Rates
Meanwhile, SBI also announced to cut FD interest rates on selected tenures. The bank has cut interest rates by 10 basis points for select medium-term deposits, specifically in the 1 to 3-year range, applicable to both general customers and senior citizens. Moreover, it reintroduced its special “Amrit Vrishti” FD Scheme with modified rates for a 444-day tenure. New rates are also effective from April 15, 2025.
| General Public | Senior Citizen | |||
|---|---|---|---|---|
| Tenors | Existing Rates for Public w.e.f. 15/06/2024 | Revised Rates for Public w.e.f. 15/04/2025 | Existing Rates for Senior Citizen w.e.f. 15/06/2024 | Revised Rates for Senior Citizen w.e.f. 15/04/2025 |
| 7 days to 45 days | 3.50 | 3.50 | 4.00 | 4.00 |
| 46 days to 179 days | 5.50 | 5.50 | 6.00 | 6.00 |
| 180 days to 210 days | 6.25 | 6.25 | 6.75 | 6.75 |
| 211 days to less than 1 year | 6.50 | 6.50 | 7.00 | 7.00 |
| 1 Year to less than 2 years | 6.80 | 6.70 | 7.30 | 7.20 |
| 2 years to less than 3 years | 7.00 | 6.90 | 7.50 | 7.40 |
| 3 years to less than 5 years | 6.75 | 6.75 | 7.25 | 7.25 |
| 5 years and up to 10 years | 6.50 | 6.50 | 7.50* | 7.50* |
