SBI Lending Rate Cut – MCLR Slashed, Borrowers Get Relief

SBI lending rate cut 2025 : Borrowers across India have a reason to celebrate! Following the Reserve Bank of India’s recent 25 basis point repo rate cut, the State Bank of India (SBI) has revised its key lending rates, including the Marginal Cost of Funds-based Lending Rate (MCLR), External Benchmark Lending Rate (EBLR), and Repo Linked Lending Rate (RLLR). Effective December 15, 2025, these reductions promise to lower EMIs for millions of home, auto, and personal loan borrowers, making loans more affordable and boosting financial relief during challenging economic times.

SBI Lending Rate Cut – MCLR Slashed, Borrowers Get Relief

SBI reduces MCLR to 7.85% and slashes lending rates by 25 bps following RBI’s rate cut. Check revised rates for home loans, personal loans, and EMIs relief.

Borrowers Cheer as SBI Slashes Lending Rates

State Bank of India (SBI), the country’s largest public sector bank, has announced a reduction in lending rates across key benchmarks, following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points to 5.25% on December 4, 2025.

This move is expected to benefit millions of retail and corporate borrowers by lowering their equated monthly installments (EMIs) for home loans, auto loans, and personal loans.

Revised SBI MCLR Rates

The Marginal Cost of Funds-based Lending Rate (MCLR) serves as a reference for most retail loans, including home and auto loans. SBI has revised its MCLR across all tenors, effective December 15, 2025.

Tenor	Existing MCLR (%)	Revised MCLR (%)
Overnight	7.90	7.85
One Month	7.90	7.85
Three Month	8.30	8.25
Six Month	8.65	8.60
One Year	8.75	8.70
Two Years	8.80	8.75
Three Years	8.85	8.80

Key Takeaway: Home loan and auto loan borrowers linked to one-year MCLR will now enjoy reduced EMIs starting December 15.

SBI EBLR & RLLR Cuts

SBI has also revised its External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR):

Rate	Existing Rate	Revised Rate
EBLR	8.15% + CRP + BSP	7.90% + CRP + BSP
RLLR	7.75% + CRP	7.50% + CRP

Borrowers on these loans will see interest rate reductions based on their credit risk profile, making it cheaper to service debt.

BPLR and Base Rate Updates

SBI has also lowered its Benchmark Prime Lending Rate (BPLR) to 14.65% p.a. and the Base Rate to 9.90%, effective December 15, 2025.

These adjustments aim to enhance loan affordability, encouraging home buying, vehicle loans, and business investments.

Impact on Borrowers

Home Loan Borrowers: Reduced MCLR translates into lower EMIs, making housing more affordable.
Personal Loan Borrowers: While personal loans are typically higher (9-10%), linked rate reductions could ease repayment burden.
Corporate Borrowers: Lower lending rates reduce capital costs for businesses, supporting expansion and growth.

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FAQ – SBI Lending Rate Cut

Q1. When will the revised SBI MCLR come into effect?
A1. The revised MCLR rates will be effective from December 15, 2025.

Q2. What is the new one-year MCLR?
A2. The one-year MCLR has been reduced from 8.75% to 8.70%.

Q3. Will EMIs decrease automatically?
A3. Yes, for loans linked to MCLR, EBLR, or RLLR, EMIs will automatically reflect the reduced rates.

Q4. How does this affect home loan interest rates?
A4. Home loan interest rates linked to MCLR or external benchmarks will be cheaper, reducing monthly EMI payouts.

Q5. Does this impact personal and auto loans?
A5. Yes, loans tied to these revised benchmarks will also benefit from lower interest rates.

Disclaimer

This post is for informational purposes only and does not constitute financial advice. Borrowers should verify the updated lending rates and terms with SBI before making any financial decisions.