SBI Lowers Loan Rates: Borrowers Benefit from RBI's Recent Cut

India's largest lender, State Bank of India (SBI), swiftly passed the Reserve Bank of India's recent 25 basis points repo rate reduction to borrowers, slashing key lending benchmarks effective December 15, 2025. This move, mirroring RBI's growth-supportive stance, lowers costs for millions on floating-rate loans amid easing monetary policy.

Rate Reduction Details:

EBLR Slash: External Benchmark Linked Rate falls 25 bps to 7.90% from 8.15%, directly cutting EMIs for repo-linked home, personal, and vehicle loans.​

MCLR Tweaks: Marginal Cost of Funds-Based Lending Rate drops 5 bps across tenures; one-year MCLR now 8.70% (from 8.75%), benefiting MSMEs and corporates.​

Base Rate Cut: Base Rate/BPLR reduced to 9.90% from 10%, plus select fixed deposit rates trimmed by 5 bps for 2-3 year terms to 6.40%.​

Retail borrowers gain affordability on homes and cars; businesses see cheaper working capital. SBI's ALCO approved changes post-RBI's policy easing.​

Sources: Economic Times, The Week, Upstox