Good news for borrowers! The State Bank of India (SBI) has just given a small but meaningful Independence Day gift to its customers, a cut in lending rates that will directly lower EMIs for many.
SBI has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 0.05%. This is the benchmark rate banks use to decide interest rates on loans, so the drop means instant relief for those with floating-rate loans.
New MCLR Rates
Overnight & One-Month: Down from 7.95% to 7.90%
Three-Month: Down from 8.35% to 8.30%
Six-Month: Down from 8.70% to 8.65%
One-Year: Down from 8.80% to 8.75%
Two-Year: Down from 8.85% to 8.80%
Three-Year: Down from 8.90% to 8.85%
What This Means for You
If your loan is linked to MCLR, especially home loans or car loans on a floating rate, your monthly EMI will drop. You might even be able to pay off your loan faster.
A floating rate simply means your interest rate moves with market conditions. So, when the MCLR falls, your cost of borrowing comes down. And if you’ve been planning to take a new loan, this could be the perfect time with lower interest rates, meaning smaller EMIs and easier repayment.
Other SBI Lending Rates
Since June 15, 2025, SBI’s External Benchmark Lending Rate (EBLR) has been 8.15% + Credit Risk Premium (CRP) + Business Strategy Premium (BSP), while its Repo Linked Lending Rate (RLLR) is 7.75% + CRP.
A Festive Gift for Borrowers
The timing couldn’t be better. SBI’s move comes just in time for Independence Day. Lower rates will make it easier for people to buy their dream home or car, while easing pressure on household budgets.
For those eyeing an SBI regular home loan, the processing fee is 0.35% of the loan amount plus GST, with a minimum charge of ₹2,000 + GST and a maximum of ₹10,000 + GST.
