Borrowers seeking home loans may soon experience some easing as the State Bank of India (SBI) has lowered its lending rates following the Reserve Bank of India (RBI) reduction of the repo rate by 25 basis points. With numerous prominent banks already passing these benefits on, SBI’s action will provide direct assistance to clients whose loans are tied to various lending benchmarks.
Atul Monga, the CEO and Co-founder of BASIC Home Loan, remarked that the central bank’s decision indicates a favorable shift.
“The RBI’s move to reduce the repo rate by 25 bps suggests a shift towards promoting growth, which is a positive development for home loan borrowers. As the majority of floating rate home loans are directly linked to the repo rate, borrowers can anticipate relief in their loan EMIs as banks and financial institutions implement these benefits. Given that inflation remains comfortably within the RBI’s target range, the policy approach aligns well with the current economic context,” he stated.
SBI has updated its MCLR, EBLR, RLLR, BPLR, and base rate, resulting in lower borrowing costs across both retail and corporate sectors.
The bank has decreased its Marginal Cost of Funds-based Lending Rate (MCLR) for all key tenors. The overnight and one-month MCLR have been reduced from 7.90% to 7.85%, while the three-month MCLR has been lowered from 8.30% to 8.25%. The six-month MCLR now stands at 8.60%, down from 8.65%.
The one-year MCLR, which serves as a crucial benchmark for retail loans, has seen a reduction from 8.75% to 8.70%. Additionally, the two-year and three-year tenors have been decreased by 5 basis points each, now at 8.75% and 8.80%, respectively.
Effective December 15, 2025, SBI has also lowered its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR). The EBLR has been adjusted down from 8.15% + CRP + BSP to 7.90% + CRP + BSP, reflecting a 25-basis point reduction in the benchmark component. Similarly, the RLLR has been decreased from 7.75% + CRP to 7.50% + CRP.
As both EBLR and RLLR are directly associated with the RBI’s repo rate, borrowers with home loans linked to these rates can soon expect lower interest payments and reduced EMIs, contingent on their credit risk profile and loan conditions.
Additionally, the bank has revised its Benchmark Prime Lending Rate (BPLR) to 14.65% and lowered its base rate to 9.90%, also effective from December 15.