On June 6, 2025, the Reserve Bank of India (RBI) reduced the repo rate by 0.50%, bringing it down to 5.5%.
This is important because:
- Repo rate directly influences how much it costs banks to borrow from the RBI.
- When the repo rate drops, banks often lower their lending rates too—which is what SBI just did.
SBI’s New Interest Rates – What’s Been Reduced?
SBI has lowered two key lending benchmarks:
| Type of Rate | Old Rate | New Rate | Cut |
|---|---|---|---|
| Repo Linked Lending Rate (RLLR) | 8.25% | 7.75% | ↓ 0.50% |
| External Benchmark Lending Rate (EBLR) | 8.65% | 8.15% | ↓ 0.50% |
These new rates are effective from June 15, 2025 and apply to new as well as existing floating-rate borrowers.
What’s the New Home Loan Interest Rate?
SBI’s updated home loan rates now start from 7.50% and go up to 10.55%, depending on your credit score and loan type.
Since SBI home loans are linked to EBLR, this cut means a direct reduction in EMI for borrowers. This is great news if:
- You’re buying a new house
- You’re refinancing your existing home loan
- Or you’re just planning to switch to a lower interest rate
Who Will Benefit From This SBI Rate Cut?
If you’re wondering whether this impacts you, here’s a quick list of who stands to benefit:
- Home loan borrowers (new and existing)
- Car and two-wheeler loan applicants
- Personal loan takers
- MSME (Micro, Small, Medium Enterprises) borrowers
Basically, if you’re planning any type of loan from SBI, this update could help you save on interest and reduce your monthly payments.
RBI Has Been Cutting Rates Regularly in 2025
Here’s a quick look at the repo rate changes this year:
| Month | Repo Rate Cut |
|---|---|
| February 2025 | -0.25% |
| April 2025 | -0.25% |
| June 2025 | -0.50% |
In addition, RBI also reduced the Cash Reserve Ratio (CRR) by 1% (now at 3%)—which gives banks more liquidity to lend money.
