The State Bank of India (SBI) has announced a reduction in interest rates on several key loan products. The move aims to ease the financial burden on borrowers. The revised interest rates will come into effect from the 15th of this month.
SBI has lowered interest rates on home loans, vehicle loans, and MSME loans. As a result, customers will see a reduction in their monthly EMIs. The bank has cut the Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenures.
Following the revision, the one-year MCLR now stands at 8.70 percent. SBI has also reduced the External Benchmark Lending Rate (EBLR) by 25 basis points. The new EBLR is 7.90 percent.
In addition, SBI has lowered the base rate for existing borrowers. The rate now stands at 9.90 percent, down from 10.00 percent. This change will benefit customers with older loan agreements.
On the deposit side, SBI has revised rates on retail term deposits below ₹3 crore. The bank reduced the interest rate on deposits with a tenure of two to less than three years to 6.40 percent. Earlier, the rate stood at 6.45 percent.
Senior citizens will now earn 6.90 percent interest for the same tenure. The earlier rate was 6.95 percent. SBI has also reduced the rate on its popular Amrit Vrishti 444-day deposit scheme to 6.45 percent.
Recently, the central government stated that it has not infused capital into public sector banks since the 2022–23 financial year. The decision reflects the improved financial performance of state-owned banks.
