SBI Update: SBI has lowered loan interest rates, but has also cut interest rates on fixed deposits; check the new rates..

India's largest lender, State Bank of India (SBI), has reduced its lending rates by 25 basis points following the Reserve Bank of India's (RBI) policy rate cut, making loans cheaper for existing and new borrowers. With the latest reduction, SBI's External Benchmark Linked Rate (EBLR) will decrease by 25 basis points to 7.90 percent. This will make home loans cheaper.

Along with reducing loan rates, the bank has also cut interest rates on fixed deposits (FDs). SBI has reduced interest rates on various FDs.

Interest Rates on FDs Reduced
India's largest bank, SBI, will reduce term deposit rates (FDs) with maturities of 2 years to less than 3 years by 5 basis points (bps), bringing the rates down from 6.45 percent to 6.40 percent, while interest rates in other maturity buckets will remain unchanged.

Additionally, SBI has reduced the interest rate on its special "444 days" scheme, Amrit Vriddhi, by 15 bps, bringing it down from 6.60% to 6.45%. Similarly, the one-year maturity rate will be cheaper at 5 percent, 8.75 percent, and 8.80 percent, respectively, according to the statement.

New Interest Rates Effective from December 15
SBI's new rates will be effective from December 15, 2025. SBI has also reduced the Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 bps across all categories. With this change, the one-year MCLR will be 8.70 percent compared to the current 8.75 percent.

The External Benchmark Linked Rate (EBLR), which is automatically revised when the repo rate changes, has been reduced from 8.15 percent to 7.90 percent. All retail and MSME loans are priced based on the EBLR.

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