Good News For Borrowers! SBI Reduces Key Lending Rates Post RBI Repo Rate Cut—Check Revised Rates | Personal Finance News

New Delhi: In a major relief for borrowers, the State Bank of India (SBI) has slashed its key lending rates by up to 0.50 per cent, following the Reserve Bank of India’s recent 50-basis-point cut in the repo rate. As the country’s largest public sector lender, SBI’s move is expected to bring down loan EMIs linked to benchmarks like the External Benchmark Rate (EBR), External Benchmark Lending Rate (EBLR), and Repo Linked Lending Rate (RLLR).

Here’s a quick and easy look at SBI’s latest lending rates, including home loan interest rates, effective from June 15, 2025:

SBI MCLR Update

As of June 14, 2025, SBI’s Marginal Cost of Funds Based Lending Rate (MCLR) remains unchanged. The overnight and one-month MCLR stand at 8.20 per cent, the three-month rate is 8.55 per cent, and the six-month rate is 8.90 per cent. The one-year MCLR—which is often used for home loans—is at 9.00 per cent, while the two-year and three-year MCLR rates are 9.05 per cent and 9.10 per cent respectively.

SBI External Benchmark Rate (EBR) Update

Starting June 15, 2025, SBI has reduced its External Benchmark Rate (EBR) from 8.65% to 8.15%. The EBR is the reference rate used by banks to set interest rates on various floating-rate loans, such as home loans and MSME loans, as per RBI guidelines.

According to SBI’s website, the EBR is calculated by adding the current RBI repo rate (5.5 per cent) with the bank’s fixed spread (2.65 per cent).

So, Final EBR = 5.5 per cent (Repo Rate) + 2.65 per cent (Spread) = 8.15 per cent

SBI Home Loan Interest Rates (Effective June 15, 2025)

SBI’s home loan interest rates now range from 7.50 per cent to 8.45 per cent, depending on the borrower’s CIBIL score. For the Home Loan Maxgain Overdraft facility, rates vary between 7.75 per cent and 8.70 per cent. If you’re taking a top-up home loan, the interest rates range from 8 per cent to 10.50 per cent.//

All SBI home loans are linked to the External Benchmark Lending Rate (EBLR), which currently stands at 8.15 per cent. Keep in mind that the final interest rate also depends on factors like your credit score, loan amount, and repayment period.

What is a CIBIL Score?

The CIBIL Score is a three-digit number that reflects your credit history and financial behavior. It ranges from 300 to 900, with a higher score indicating better creditworthiness. A score closer to 900 means you’re more likely to be approved for loans at lower interest rates.

CIBIL (Credit Information Bureau India Limited) is one of four credit bureaus licensed by the Reserve Bank of India (RBI). The other three are Experian, Equifax, and Highmark. All of them collect and analyze your credit data to help lenders assess your loan eligibility.

SBI Home Loan Processing Fee: What You Should Know

SBI charges a processing fee of 0.35 per cent of your total home loan amount, plus applicable GST. However, this fee comes with limits—a minimum of Rs 2,000 and a maximum of Rs 10,000, excluding GST.