Good news for borrowers and investors! Following the Reserve Bank of India’s (RBI) recent decision to slash the repo rate, the country’s largest public sector bank, the State Bank of India (SBI), has announced a reduction in its lending rates. Whether you're planning a new home purchase or already repaying a loan, this change could lower your EMI burden.

💡 SBI Slashes Loan Interest Rates by 0.25%

SBI has officially reduced its loan interest rates by 25 basis points (0.25%). With this latest revision, the bank's Repo-Linked Lending Rate (RLLR) has been brought down to 8.25%. This rate cut is applicable to both new and existing loan customers, meaning if you already have an SBI loan or are planning to apply, you’ll be able to benefit from these revised rates.

💡 External Benchmark Lending Rate Also Reduced

In addition to cutting loan interest rates, SBI has trimmed its External Benchmark Lending Rate (EBLR) by 25 basis points as well, lowering it to 8.65%. The new interest rates will come into effect from April 15, 2025.

This move comes on the heels of the RBI’s second consecutive repo rate cut — a strategic decision aimed at stabilizing the Indian economy in light of global trade tensions and policy uncertainties, including the tariff risks posed by the U.S. administration.

💡 Fixed Deposit Rates Revised Too

The rate cuts don’t stop at loans — SBI has also adjusted its Fixed Deposit (FD) interest rates downward.

For deposits up to ₹3 crore:

• 1-2 year FDs will now fetch 6.7% interest, down from 6.8%.

• 2-3 year FDs will offer 6.9%, instead of 7%.

For high-value deposits (above ₹3 crore):

• 180-210 day FDs will now yield 6.4%, reduced from 6.6%.

• 211 days to 1 year: down to 6.5% from 6.75%.

• 1-2 year tenure will now fetch 6.8%, down from 7%.

💡 What Does This Mean for You?

For borrowers, these lower rates translate into reduced EMIs, offering significant relief in the long run. Home loans, personal loans, and business loans linked to repo or external benchmarks will become more affordable.

For investors, especially senior citizens and fixed-income planners, the slight dip in FD interest rates is something to consider while making new investments.

SBI’s decision reflects the larger trend of rate adjustments across the banking sector, following the RBI’s proactive stance to stimulate the economy. As the changes are effective from April 15, 2025, both new and existing customers should review their loan and deposit portfolios to take full advantage.