SBI Reduces Lending Rates by 25 bps Following Rate Cuts by Other Banks
In line with reduction in the repo rate by RBI, the State Bank of India has reduced its Repo Linked Lending Rate by 25 basis points to 8.25% for loaning starting April 15, 2025. SBI's External Benchmark Based Lending Rate too goes lower as part of a bigger trend among lenders to make cheap borrowing.
SBI Reduces Lending Rates by 25 bps Following Rate Cuts by Other Banks
SBI, the largest lender in India, has cut its Repo Linked Lending Rate (RLLR) by 25 basis points to 8.25%. The reduction in RLLR is in consideration of the recent 25 basis points repo rate cut by RBI for achieving growth. SBI has also reduced its EBLR to 8.60% effective from April 15, 2025, and these two steps are aimed at offering competitive rates to its new and existing borrowers. The changes are incorporated in the revised rate details published on SBI's website.
In line with RBI's instruction, other lenders too have changed their lending rates. The Bank of India, for example, has changed its repo-linked benchmark lending rate (RBLR) from 9.1% to 8.85%, effective April 9, 2025. The new rates are applicable from April 9, 2025," the bank said. This is part of a larger plan to improve affordability for home loan consumers in the wake of changing monetary policy conditions.
The MCLR or Marginal Cost of Funds Based Lending rate, that is the lowest at which the bank can lend money to its customers, has also not changed. SBI-1-year MCLR stands at 9% and while SBI 3-year MCLR was 9.10%. All these rates too will become applicable from today, April 15, 2025.
Concurrently, Punjab National Bank (PNB) has lowered its RLLR to 8.85% from 9.1% as of April 10, 2025. Indian Bank has also revised its repo benchmark rate and corresponding lending rates, with effect from April 11, 2025, in tandem with the RBI policy change. Furthermore, private sector behemoth HDFC Bank lowered its savings account rate by 25 basis points to 2.75%, which is among the lowest for its peer group.
