SBI Interest Rates Cut: SBI Bank has cut its External Benchmark Based Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR). According to the official website of SBI, EBLR has been reduced from 9.15% to 8.90%, while RLLR has been reduced from 8.75% to 8.50%.
SBI Interest Rates Cut: India’s largest bank State Bank of India (SBI) has given relief from many types of loans including home. Actually, SBI has cut its External Benchmark Based Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR). According to the official website of SBI, EBLR has been reduced from 9.15% to 8.90%, while RLLR has been reduced from 8.75% to 8.50%. This decision has come at a time when the Reserve Bank of India has cut the repo rate by 25 basis points in its Monetary Policy Committee meeting, reducing it from 6.50% to 6.25%. In such a situation, those who have taken home loan or any other loan from SBI Bank, their interest rates may come down.
However, SBI has not made any change in the Marginal Cost of Funds-Based Lending Rate (MCLR), Base Rate and Benchmark Prime Lending Rate (BPLR).
How are home loan interest rates decided?
The bank determines the interest rate given to customers based on the RBI’s repo rate, which is called Repo Linked Lending Rate (RLLR). From October 2019, it has been made mandatory for banks to link their retail loans such as home loans to the external benchmark rate (EBLR). In such a situation, if your loan is linked to RLLR, then the interest rate of your loan will also change when the RBI’s repo rate changes. This is the reason why most customers choose the option of floating rate linked to RLLR.
Other banks also made changes
- Canara Bank has increased its repo linked lending rate (RLLR) from 9 percent to 9.25 percent. This rate will be effective for new accounts opened on or after 12.02.2025 and account holders who complete 3 years under the RLLR system on or after 12.02.2025.
- According to the website of Bank of Baroda, BRLLR of 8.90% has been implemented for retail loans from 10.02.2025 (current RBI repo rate: 6.25% + markup/base spread 2.65%).
- At the same time, Bank of India has reduced its repo-based lending rate from 9.35% to 9.10%.
- Union Bank of India has reduced its repo-based lending rate to 9% from 9.25%, and Punjab National Bank (PNB) has reduced its repo linked lending rate (RLLR) from 9.25% to 9%.
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