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SBI Slashes Lending Rates: Borrowers Rejoice!
13 Dec, 2025
Summary
- SBI reduced MCLR by 5 basis points across all tenors.
- External Benchmark Linked Rate (EBLR) lowered by 25 basis points.
- Interest rates on select term deposits also saw marginal cuts.
State Bank of India (SBI) has implemented a reduction in its key lending benchmarks, effective December 15. The Marginal Cost of Funds-based Lending Rate (MCLR) has been decreased by 5 basis points across all tenors, including overnight, one-month, three-month, six-month, and one-year rates. This move is poised to lower borrowing costs for retail and small business customers.
Further relief for borrowers comes with a more significant 25 basis point reduction in the External Benchmark Linked Rate (EBLR), which impacts many floating-rate retail loans. The bank also trimmed its Base Rate for legacy borrowers. In parallel, SBI has adjusted interest rates on certain domestic retail term deposits below Rs 3 crore, with specific tenors seeing a 5 basis point decrease.
These rate revisions occur amidst a backdrop of improved financial health reported by public sector banks, with the government noting sustained profitability and stronger capital positions. SBI also recently projected that a goods and services tax reduction could help moderate inflation.
