India’s largest public sector lender, the State Bank of India (SBI), has brought a wave of relief to borrowers in April 2025. In response to the Reserve Bank of India’s (RBI) latest monetary policy, SBI has lowered its loan interest rates, making it more affordable for individuals and businesses to borrow money. Whether you’re planning to buy a home, fund education, or invest in a business, this move is great news if you’re an SBI customer.
Good News for SBI Customers: Loans Just Got Cheaper
| Feature | Details |
|---|---|
| Bank Name | State Bank of India (SBI) |
| Latest Rate Update | April 15, 2025 |
| RBI Repo Rate | Reduced by 25 basis points to 6.25% |
| SBI 1-Year MCLR | 9.00%, unchanged |
| Home Loan Rate Range | 8.25% to 9.20% (linked to EBLR) |
| External Benchmark Lending Rate (EBLR) | 8.90% (Repo rate + 2.65%) |
| Eligible Borrowers | Retail, home loan, MSME customers |
| Official Source | SBI Website |
SBI’s latest rate update, following the RBI’s repo rate cut, marks a welcome shift for millions of Indian borrowers. Whether you’re planning to buy a new home, upgrade your car, or fund your child’s education, lower interest rates make loans more affordable than ever before. Stay updated, monitor your credit score, and make smart financial decisions — because every rupee saved on EMIs is money earned.
Why Did SBI Reduce Loan Rates?
To understand the current development, let’s begin with what’s happening at the central banking level. Earlier in April 2025, the RBI reduced the repo rate — the rate at which it lends to commercial banks — from 6.50% to 6.25%.
SBI, like many other banks, ties its loan products to benchmarks like the Repo Rate or External Benchmark Lending Rate (EBLR). When the repo rate drops, your home loan, car loan, or education loan interest can become cheaper, especially if you’re on a floating rate plan.
So, this rate cut by RBI has led to a trickle-down benefit for millions of SBI customers. While MCLR-based loans remain unchanged, those with loans linked to the EBLR will now pay less in interest, effectively lowering their monthly EMIs.
see also: SBI Reduces FD Rates in April 2025: Here’s How Much Interest You’ll Get Now
What Are the New SBI Loan Interest Rates?
Let’s break down the latest SBI lending rates for different loan categories.
MCLR (Marginal Cost of Funds Based Lending Rate) – As of April 15, 2025
| Tenure | MCLR (%) |
|---|---|
| Overnight | 8.20% |
| 1 Month | 8.20% |
| 3 Months | 8.55% |
| 6 Months | 8.90% |
| 1 Year | 9.00% |
| 2 Years | 9.05% |
| 3 Years | 9.10% |
These are applicable for older loans still linked to MCLR. The rates remain unchanged, but new borrowers typically opt for EBLR-linked loans, which reflect market changes faster.
SBI Home Loan Interest Rates (Floating, EBLR-linked)
| Credit Score (CIBIL) | Home Loan Interest Rate |
|---|---|
| Above 750 | 8.25% |
| 700–749 | 8.45% |
| 650–699 | 8.75% |
| Below 650 | 9.20% |
These rates can vary based on the borrower’s creditworthiness. So, a better credit score helps you lock in a lower rate, saving thousands over the loan tenure.
What is EBLR and Why It Matters?
EBLR stands for External Benchmark Lending Rate. Unlike the MCLR system, where changes are less frequent, EBLR is directly linked to an external benchmark — in this case, RBI’s repo rate.
EBLR = Repo Rate + Bank Spread (SBI’s spread is 2.65%)
So, with the repo rate now at 6.25%, SBI’s EBLR is 8.90%, down from 9.15% earlier.
If your home loan is EBLR-linked, this reduction automatically brings down your interest rate — which means lower EMIs starting from the next reset period (typically 3 to 6 months).
How Much Will You Save?
Let’s take an example to understand the real impact:
Loan Amount: ₹30 lakhs
Old Rate (9.15%): EMI = ₹27,234
New Rate (8.90%): EMI = ₹26,588
Savings per month = ₹646
Savings over 20 years = ₹1.55 lakhs+
For borrowers with higher loan amounts, especially in metro cities, this can result in substantial long-term savings.
Tips to Make the Most of SBI’s Lower Loan Rates
Here are practical tips if you’re an existing or potential SBI borrower:
1. Check Your Loan Type
Find out whether your loan is:
- MCLR-linked
- EBLR-linked
- Fixed-rate
Only EBLR-linked loans benefit from repo rate cuts. Consider switching if you’re on an old MCLR-based loan.
2. Improve Your Credit Score
Higher scores = Lower interest.
- Pay credit card bills on time
- Avoid defaults or missed payments
- Keep credit utilization below 30%
CIBIL 750+ can unlock SBI’s lowest rates.
3. Refinance or Balance Transfer
If your current lender hasn’t passed on rate cuts, consider moving your loan to SBI. Home loan balance transfers are easy and often come with zero processing fees.
How to Apply for SBI Loans at the New Rates
Applying is simple and can be done both online and offline:
Online Process
- Visit: https://sbi.co.in
- Go to ‘Loans’ → Select product (Home, Car, Personal, etc.)
- Fill in the application form
- Upload documents (ID proof, income proof, property papers)
- Await approval and disbursal
Offline Process
- Visit your nearest SBI branch
- Speak to a loan officer
- Submit the application and KYC documents
- Track status via SMS/email
You can also use the SBI YONO app to track applications and manage EMIs digitally.
Who Benefits the Most?
These new rates are particularly beneficial for:
- First-time homebuyers looking to take advantage of lower EMIs
- Salaried professionals who qualify for better credit-linked terms
- MSMEs and entrepreneurs seeking working capital loans
- Education loan seekers during admission season
Even if you’re not currently borrowing, now could be the best time to consider investment purchases or debt consolidation with low-interest SBI loans.
see also: Create a Fund of Up to ₹86 Lakh by Investing ₹1000 per Month in LIC Mutual Fund Scheme
Good News for SBI Customers FAQs
Q1. Has SBI reduced its loan rates for all borrowers?
Yes, borrowers with EBLR-linked loans will see lower interest due to the repo rate cut. MCLR rates remain unchanged.
Q2. What is the current SBI home loan interest rate?
It ranges from 8.25% to 9.20%, depending on your credit score.
Q3. How do I check if my loan is EBLR-linked?
Login to SBI net banking or check your loan documents. You can also call SBI customer care.
Q4. Will my EMI reduce automatically?
Yes, if your loan is EBLR-linked, EMI will reduce from the next reset date. No action is required.
Q5. Can I switch from MCLR to EBLR?
Yes. SBI allows internal loan conversion. Visit your home branch or apply via net banking for a switch.
