The State Bank of India (SBI), the country’s largest public sector bank, has decided not to change its lending rates for May 2025.
This decision follows a 0.25% reduction in April 2025, which was in response to the RBI’s cut in the repo rate.
After the MCLR (Marginal Cost of Funds Based Lending Rate) was lowered in April, SBI has kept its rates unchanged in May, including its MCLR and Repo Linked Lending Rate (RLLR).
MCLR reduction in April
In April 2025, the Reserve Bank of India (RBI) reduced its repo rate from 6.25% to 6.00%.
Following this, SBI also lowered its external benchmark-linked loan rates by 0.25%. This change provided relief to borrowers, especially those with home loans.
SBI’s New External Benchmark Rate (EBR)
As of April 15, 2025, SBI has set its External Benchmark Rate (EBR) at 8.65%. This rate has two components:
RBI Repo Rate: 6.00%
Bank Spread: 2.65%
The total EBR equals 8.65% (6.00% + 2.65%). This rate applies to floating rate loans, such as home loans and car loans.
What is RLLR (Repo Rate Linked Lending Rate)?
RLLR is another interest rate linked to the RBI’s repo rate. However, it also includes a Credit Risk Premium (CRP) based on the borrower’s CIBIL score and risk.
SBI’s new RLLR is 8.25%, which includes the 6% repo rate and a 2.25% premium.
MCLR rates remain unchanged in May 2025
SBI has kept its MCLR-based interest rates unchanged. These are the current rates:
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 1, 2019, SBI and other banks have started issuing loans linked to external benchmarks instead of MCLR.
The interest rates for SBI home loans depend on the borrower’s CIBIL score.
Current interest rates
Home loans: 8% to 8.95%
Maxgain OD Loan: 8.25% to 9.15%
Top-up loan: 8.30% to 10.80%
These rates are effective from April 15, 2025.
How customers benefit
The decision to keep interest rates unchanged benefits both existing and new borrowers.
It means that their EMIs will not increase, which is a good opportunity for those looking to take a new loan.
If you’ve already taken a loan and it’s linked to EBR or RLLR, you’ll also benefit from this decision.
