The State Bank of India (SBI) has announced a 50 basis point (bps) reduction in its lending rates, aligning with the Reserve Bank of India’s (RBI) recent repo rate cut. Additionally, SBI has trimmed interest rates on its special deposit scheme by 25 bps, bringing it down to 6.60%.
Key Highlights of SBI’s Rate Cut
- Effective Date: June 15, 2025
- External Benchmark Lending Rate (EBLR): Reduced to 8.15% from 8.65%
- Home Loan Interest Rates: Now range between 7.5% and 8.45%, depending on the borrower’s credit score
- Special Deposit Scheme (444 days – Amrit Vrishti): Interest rate lowered to 6.60%
Impact on Borrowers & Depositors
- Home loan EMIs to decrease, benefiting both new and existing borrowers.
- Fixed deposit returns slightly reduced, affecting long-term deposit holders.
- Other PSU banks like PNB, BoB, and Canara Bank have also adjusted their rates following the RBI’s 50 bps repo rate cut.
Future Outlook
With inflation stabilizing, experts predict further rate adjustments in the coming months. SBI’s move ensures competitive lending rates, making loans more affordable while balancing deposit returns.
