SBI Home Loan Update: Big Festive Gift from India’s Largest Bank — No Change in EMI Before Diwali
SBI Home Loan News 2025:
In a major festive relief for millions of borrowers, the State Bank of India (SBI) — the country’s largest public sector bank — has announced that it will not increase its Marginal Cost of Funds-Based Lending Rate (MCLR) for October 2025. This means home loan and car loan EMIs will remain unchanged during the Diwali and Dhanteras season, offering customers much-needed financial stability during the festive period.
The revised MCLR rates, effective from October 15, 2025, remain exactly the same as the previous month. While several other banks have been adjusting lending rates amid changing market conditions, SBI’s decision to maintain status quo comes as a welcome gesture to support borrowers during the festive season, when household spending typically rises.
SBI Keeps MCLR Unchanged Across Tenures
SBI has decided neither to increase nor decrease its MCLR across all loan tenures. The unchanged rates are as follows:
| Tenure | New MCLR (15 Oct 2025) | Old MCLR (15 Sept 2025) |
|---|---|---|
| Overnight | 7.90% | 7.90% |
| One Month | 7.90% | 7.90% |
| Three Months | 8.30% | 8.30% |
| Six Months | 8.65% | 8.65% |
| One Year | 8.75% | 8.75% |
| Two Years | 8.80% | 8.80% |
| Three Years | 8.85% | 8.85% |
This stability ensures that borrowers’ EMIs for home, car, and personal loans linked to MCLR remain unaffected. For many families already managing festive budgets, this consistency provides relief from any potential financial strain.
Why MCLR Matters for Loan Borrowers
The MCLR (Marginal Cost of Funds-Based Lending Rate) is the internal benchmark rate used by banks to decide lending rates for various loans, including home loans, auto loans, and personal loans. When banks revise their MCLR upward, EMIs for borrowers increase, and when it decreases, EMIs reduce.
Since SBI’s MCLR has remained constant, borrowers’ monthly outflows won’t rise — a positive sign for both existing and new customers. The unchanged rates suggest that SBI is focusing on financial stability and affordability amid the ongoing festive season.
SBI Home Loan Processing Fees
For those planning to apply for a new SBI home loan, the bank currently charges a processing fee of 0.35% of the loan amount (plus GST). The minimum fee is ₹2,000, and the maximum is capped at ₹10,000.
This processing charge is among the most competitive in the market, making SBI home loans an attractive option for new borrowers. Combined with unchanged interest rates, this move is likely to boost loan demand during the festival-driven real estate buying period.
CIBIL Score and Its Importance for Borrowers
Before applying for a loan, SBI and other banks evaluate the CIBIL score, a key factor determining loan eligibility and interest rate.
The CIBIL (Credit Information Bureau of India Limited) score reflects a borrower’s credit history and repayment behavior. A higher score indicates strong financial discipline and improves the chances of getting loans at lower interest rates.
Apart from CIBIL, credit agencies like Experian, Equifax, and Highmark are also recognized by the Reserve Bank of India (RBI) for assessing creditworthiness.
SBI’s Festive Gesture: What It Means for Customers
The timing of SBI’s decision could not be better. With Diwali and Dhanteras approaching, many households are planning major purchases such as homes, vehicles, and gold. By keeping MCLR rates steady, SBI ensures that borrowers’ EMIs remain manageable, effectively providing a festive financial gift to millions of customers.
This move not only boosts consumer confidence but also aligns with the bank’s long-standing commitment to supporting the financial needs of Indian households, especially during festive months when expenses tend to rise.
Final Word
SBI’s decision to maintain its MCLR rates at current levels brings cheer to borrowers ahead of the festival season. For existing home and car loan customers, this means no change in EMIs, while new borrowers can still avail of loans at competitive rates.
With the country’s largest lender taking this customer-friendly step, the festive period is set to become more financially comfortable for families across India — a true Diwali gift from SBI.
