India’s largest public sector bank, State Bank of India (SBI), has announced a major update for home loan borrowers. The lender cut interest rates on home loans after the RBI reduced the repo rate in a recent action. This action will lower EMIs and provide respite to crores of new and old loan recipients.
Lower Interest Rates for Home and Car Loans
SBI has changed home and car loan interest rates, and this will come as a relief to crores of customers across the nation. Borrowers are now able to opt for lower EMIs or the loan tenure, depending on their repayment option.
Individuals who are willing to avail a new home loan from SBI will discover it cheaper than it was earlier. In case your home loan comes with floating interest rates, you are most probably going to suffer the cost cut.
New July 15, 2025 MCLR Rates
SBI has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by 0.25%. New rates are as under:
Overnight & 1-Month MCLR: 7.95% (previously 8.20%)
3-Month MCLR: 8.35% (previously 8.55%)
6-Month MCLR: 8.70% (previously 8.90%)
1-Year MCLR: 8.80% (previously 9.00%)
2-Year MCLR: 8.95% (previously 9.05%)
3-Year MCLR: 8.90% (previously 9.10%)
These rates will be in force from 15 July 2025 and will affect customers having MCLR-based loans.
Other SBI Lending Rates to Watch
Besides MCLR, SBI has also revised other lending rates:
EBLR: 8.15% + CRP + BSP
RLLR (Repo Linked Lending Rate): 7.75% + CRP (effective 15 June 2025)
Home Loan (Regular): 7.50% to 8.45% (depending on CIBIL score)
Maxgain Overdraft Loan: 7.75% to 8.70%
Top-Up Loan: 8% to 10.50%
Loans against EBLR or RLLR would also attract lower EMIs. But these would be launched depending on your loan’s reset date.
SBI also levies a processing charge of 0.35% of the loan (including GST). The minimum is ₹2,000 and the maximum is ₹10,000.
CIBIL Score: Why It Matters
Your CIBIL score also determines your rate of interest on a loan. Your chances of availing a lower rate loan are higher with a good score. Other RBI-approved credit agencies include Experian, Equifax, and Highmark.
Who Benefits the Most?
Homebuyers who are coming in for a new home loan or top-up or already have floating rate loans will gain the most from this rate reduction. The lower rates can ease the monthly installment load and reduce the burden of expenditure on families.
If you are considering home purchasing, the time is favorable to pay a visit to SBI’s reasonable lending rates.