The country's largest lender State Bank of India (SBI) has reduced its lending rate by 25 basis points following the Reserve Bank's policy rate cut, making loans cheaper for both existing and new borrowers..
With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of SBI would come down by 25 basis points to 8.25 per cent.
It has also reduced the External Benchmark Based Lending Rate (EBLR) by similar basis points to 8.65 per cent. The revised rates come into effect from April 15, 2025, according to updated rate information on SBI's website.
The rate reduction is in response to last week's RBI slashing key interest rate by 25 basis points for the second time in a row to support growth facing the threat of reciprocal tariffs by the US.
Besides, the bank also cut deposit rates by 10-25 basis points, which will again be effective from April 15.
With the revision, for fixed deposits up to Rs 3 crore, the interest rate on 1-2 year term deposits will be lower by 10 basis points to 6.70 per cent, and deposits having two years to less than 3 years maturity will attract 6.90 per cent as against 7 per cent.
In case of fixed deposits over Rs 3 crore, term deposits of maturity 180 days to 210 days have been reduced by 20 basis points to 6.40 per cent while for 211 days to less than 1 year by 25 basis points to 6.50 per cent.
Similarly, for 1-2 years, the new interest rate would be 6.80 per cent from 7 per cent, and for 2-3 years would be 6.75 per cent from 7 per cent, a reduction of 25 basis points.
SBI green rupee term deposit is available for three specific tenors of 1111, 1777 and 2222 days, at 10 bps below card rate.
The specific tenor scheme of '444 days' (Amrit Vrishti) at rate of interest 7.05 per cent is effective from April 15, 2025, and senior citizens are offered a rate of interest 7.55 per cent and super senior citizens are offered an interest rate of 7.65 per cent.
Meanwhile, private sector major HDFC Bank has lowered interest rate on savings accounts by 25 basis points to 2.75 per cent which is the lowest among peers in the private sector.
For balances above Rs 50 lakh, the rate now stands at 3.25 per cent as against 3.5 per cent. The reduction in rate is effective from April 12, as per the HDFC Bank's website.
Another public sector Bank of India has withdrawn its 400-day special deposit scheme which offered 7.3 per cent. Mumbai-based Bank of India has announced a reduction of 25 basis points in its home loan interest rates, benefitting both new and existing customers.
With this revision, the home loan rate stands reduced to 7.9 per cent per annum based on CIBIL score.
The revised rates come into effect from April 15, 2025.
In addition to home loans, Bank of India has also reduced interest rates by 25 basis points across select existing retail loan products, including vehicle loan, personal loan, loan against property, education loan and Star reverse mortgage loan, it said.
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