Core Viewpoint - The State Bank of India (SBI) has reduced its lending rates by 25 basis points in response to the Reserve Bank of India's (RBI) policy rate cut, making loans cheaper for borrowers [1][2]. Group 1: Lending Rate Reductions - SBI's External Benchmark Linked Rate (EBLR) will decrease to 7.90% effective December 15, 2025 [1]. - The Marginal Cost of Funds-Based Lending Rate (MCLR) has been reduced by 5 basis points across all tenures, with the one-year maturity MCLR falling to 8.70% from 8.75% [2]. - The Base Rate/BPLR has been lowered to 9.90% from 10%, effective December 15 [3]. Group 2: Fixed Deposit and Specific Scheme Rates - The fixed deposit rate for maturities between two to three years has been cut by 5 basis points to 6.40%, effective December 15 [3]. - The interest rate for the '444 days' Amrit Vrishti scheme has been revised from 6.60% to 6.45%, effective December 15 [4]. Group 3: Impact on Borrowers - The rate reductions will lower Equated Monthly Instalments (EMIs) for both existing and new borrowers linked to these benchmarks [6]. - Retail customers seeking home, vehicle, and personal loans will benefit from enhanced affordability, while MSMEs and corporate borrowers will experience reduced costs of funds, supporting business growth [6]. Group 4: Other Lenders - Indian Overseas Bank (IOB) has also announced a reduction in its lending rates, effective December 15, 2025 [4][5]. - IOB's EBLR has been reduced by 25 basis points from 8.35% to 8.10%, fully passing the policy rate cut to customers [5].