State Bank of India (SBI), the largest public sector bank in the country, has not changed its lending rates for May 2025.
This comes after it reduced rates by 0.25% in April 2025, following RBI’s cut in the repo rate.
Since the April reduction, SBI has kept its MCLR (Marginal Cost of Funds Based Lending Rate) and Repo Linked Lending Rate (RLLR) unchanged in May.
MCLR Reduced in April
In April 2025, the Reserve Bank of India (RBI) lowered the repo rate from 6.25% to 6.00%.
After this, SBI also cut its external benchmark-linked loan rates by 0.25%. This was good news, especially for home loan borrowers.
SBI’s External Benchmark Rate (EBR)
From April 15, 2025, SBI fixed its EBR at 8.65%, which includes:
RBI Repo Rate: 6.00%
Bank Spread: 2.65%
Total EBR = 6.00% + 2.65% = 8.65%
This rate applies to floating loans like home loans and car loans.
What is RLLR (Repo Linked Lending Rate)?
RLLR is also based on the repo rate but includes a Credit Risk Premium (CRP) depending on the borrower’s CIBIL score and risk. SBI’s current RLLR is 8.25%, which includes 6% repo rate plus 2.25% premium.
No Change in MCLR in May 2025
SBI kept the MCLR interest rates steady in May. The rates are:
Overnight: 8.20%
1 Month: 8.20%
3 Months: 8.55%
6 Months: 8.90%
1 Year: 9.00%
2 Years: 9.05%
3 Years: 9.10%
Since October 2019, banks like SBI have been offering loans linked to external benchmarks rather than MCLR. SBI home loan rates now depend on your CIBIL score.
Current Interest Rates
General: 8% to 8.95%
Maxgain Overdraft Loan: 8.25% to 9.15%
Top-up Loan: 8.30% to 10.80%
All these rates are effective from April 15, 2025.
Benefits for Customers
These interest rates will help both new and existing borrowers. The EMI will not increase, making it a good time to take a new loan. If your loan is linked to EBR or RLLR, you will also benefit.
Gold Rate Update
Gold prices have dropped by Rs 2000, reaching a one-month low as of Thursday, 15 May.
