State Bank of India has announced reductions across both its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR), effective December 15, 2025. SBI’s EBLR has been lowered from 8.15% plus Credit Risk Premium (CRP) and Bank Spread (BSP) to 7.90% plus CRP and BSP, reflecting a 25-basis-point cut in the benchmark component.Similarly, SBI’s RLLR, which is directly tied to the RBI’s repo rate, has been reduced from 7.75% plus CRP to 7.50% plus CRP. The final interest rate for borrowers will ...

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].

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].