SBI lowers home loan rates, trims interest on select FDs from December 15

SBI has eased borrowing costs by reducing MCLR rates across all tenors by 5 basis points.

State Bank of India (SBI), the country’s largest lender, has announced a reduction in key lending and deposit rates, bringing some relief to borrowers while slightly lowering returns on select fixed deposits. The revised rates will come into effect from December 15.

On the deposit side, most retail fixed deposit rates for amounts below Rs 3 crore remain unchanged. However, SBI has cut the interest rate on its popular 444-day ‘Amrit Vrishti’ fixed deposit scheme to 6.45% from the earlier 6.60%. For senior citizens, rates remain higher across tenures, though the 2–3 year deposit slab has seen a marginal cut to 6.90% from 6.95%. For the general public, the rate for the same tenure has been reduced to 6.40% from 6.45%.

Meanwhile, borrowing has become cheaper across the board. SBI has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points for all tenures. The one-year MCLR, a key benchmark for many loans, now stands at 8.70%, down from 8.75%. Other tenures, including overnight, one-month and three-year MCLR, have also been lowered.

The bank has also announced a sharper cut in its External Benchmark Linked Rate (EBLR), which applies to most floating-rate retail loans such as home loans. The EBLR has been reduced by 25 basis points to 7.90% from 8.15%. In addition, SBI has lowered its Base Rate for legacy borrowers to 9.90% from 10.00%.

For customers, the changes mean likely relief on loan EMIs, especially for home loan borrowers linked to the EBLR and for those whose interest rates are due for reset. Fixed deposit investors, however, will see largely stable returns, with only limited cuts in specific schemes and tenures.

Overall, the move reflects a gradual easing of borrowing costs while keeping deposit rates mostly steady.