Home loan EMIs to get cheaper? SBI passes on RBI’s 25 bps repo rate cut benefits; check the new rates

Core Viewpoint - The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points, prompting major banks, including the State Bank of India (SBI), to lower their lending rates to ease borrowing costs for customers [3]. Group 1: Lending Rate Adjustments - SBI has cut its Marginal Cost of Funds-based Lending Rate (MCLR) across various tenors, effective from December 15, 2023 [2][3]. - The External Benchmark Lending Rate (EBLR) has been reduced from 8.15% + Credit Risk Premium (CRP) + Bank Spread (BSP) to 7.90% + CRP + BSP, a decrease of 25 basis points [2][3]. - The Repo Linked Lending Rate (RLLR) has been adjusted from 7.75% + CRP to 7.50% + CRP, reflecting a 25-basis point cut [2][3]. - The Benchmark Prime Lending Rate (BPLR) has been revised to 14.65% per annum [2][3]. - The base rate has been cut to 9.90%, effective from December 15, 2025 [2][3]. Group 2: MCLR Specifics - Overnight and one-month MCLR rates have been reduced from 7.90% to 7.85% each [4]. - The three-month MCLR has been cut from 8.30% to 8.25% [4]. - The six-month MCLR is now at 8.60%, down from 8.65% [4]. - The one-year MCLR has been lowered from 8.75% to 8.70%, which is widely used for retail loans [4]. - The two-year MCLR has been reduced from 8.80% to 8.75% [4]. - The three-year MCLR is now at 8.80%, down from 8.85% [4].