SBI Lowers Interest Rates, Making Loan EMIs Cheaper

Swift Summary

• State Bank of India (SBI) has reduced its marginal cost of funds-based lending rates (MCLR) across all tenures by up to 25 basis points (bps).
• The revised MCLR rates effective July 15, 2025, range between 7.95% and 8.90%, compared to the earlier range of 8.20% to 9.10%.
• MCLR reductions: Overnight and one-month tenors lowered by 25 bps; three-month tenor down by 20 bps; six-month, one-year, two-year, and three-year tenors dropped by up to 20 bps each.
• External Benchmark Lending Rate (EBLR) is now set at 8.15% + Credit Risk Premium + Business Strategy Premium as of June 15,while Repo Linked Lending Rate (RLLR) stands at 7.75% + CRP.
• SBI’s home loan interest rates vary between 7.50% to 8.45%, influenced by borrowers’ CIBIL scores; alternative loans like Maxgain OD or top-up loans have slightly higher ranges starting from 7.75%.
• SBI charges a processing fee on home loans: 0.35% of the loan amount (minimum Rs ₹2,000 and maximum ₹10,000), exclusive of GST.

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Indian Opinion Analysis
SBI’s decision to lower its MCLR aligns with a broader trend in banking aimed at making borrowing more affordable as economic conditions stabilize post-pandemic recovery measures globally in late fiscal seasons . The reduction not only benefits retail borrowers seeking home loans but may also positively impact MSME businesses whose floating-rate instruments depend heavily on benchmark adjustments like eblrs/RLL_View adjustments .

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