SBI Brings Festive Cheer: No Change in MCLR, Home and Car Loan EMIs to Remain Unaffected

In a welcome move for millions of customers ahead of the festive season, the State Bank of India (SBI), the country’s largest public sector lender, has announced that it will keep its Marginal Cost of Funds-Based Lending Rate (MCLR) unchanged. This decision, which comes just before the start of Navratri, ensures that borrowers will continue to pay the same interest on their home and car loans, bringing relief to households preparing for festival expenses.

No Increase or Decrease in MCLR

SBI has revised its MCLR but has chosen neither to hike nor reduce the key lending rate this time. The unchanged rates mean that customers will not face any increase in their Equated Monthly Installments (EMIs) for loans linked to MCLR. The revised rates have already come into effect from 15 September 2025.

The current MCLR rates stand as follows:

• Overnight and 1-month MCLR: 7.90%

• 3-month MCLR: 8.30%

• 6-month MCLR: 8.65%

• 1-year MCLR: 8.75%

• 2-year MCLR: 8.80%

• 3-year MCLR: 8.85%

Since most home loans are typically linked to the one-year MCLR, the unchanged 8.75% rate means that monthly repayments for home and car loans will remain stable.

Why This Matters to Borrowers

MCLR is a benchmark rate used by banks to set the interest rates on various loans, including housing and vehicle loans. Any upward revision usually results in higher EMIs, putting pressure on household budgets. SBI’s decision to maintain the existing rates provides a financial breather, particularly as families plan their festival purchases and big-ticket expenses during Navratri and Diwali.

For new borrowers, the steady MCLR translates into more attractive lending conditions. Those planning to take a fresh home loan, car loan, or even a top-up loan can benefit from competitive interest rates without worrying about an immediate rate hike.

Loan Processing Charges and Credit Score Importance

While interest rates remain unchanged, borrowers should also consider processing charges and credit requirements. SBI currently levies a 0.35% processing fee on home loans (exclusive of GST), with a minimum charge of ₹2,000 and a maximum of ₹10,000. Maintaining a healthy credit score, such as a strong CIBIL rating, can also help applicants secure loans at better rates. Along with CIBIL, other RBI-approved agencies like Experian, Equifax, and Highmark provide credit reports that lenders use to evaluate borrowers.

Good Time to Secure a Loan

With no change in MCLR and festivals around the corner, financial experts suggest that this could be a favorable time to apply for home or car loans. Stable rates, combined with festive offers from banks and developers, can make borrowing more affordable and attractive.

SBI’s decision not to raise its MCLR ahead of Navratri sends a positive signal to the market and offers much-needed relief to existing and prospective borrowers. As families prepare for major festive purchases, the move ensures that loan EMIs remain manageable, helping customers plan their budgets more confidently during the festive season.