SBI Lowers Interest Rates for Home Loan Borrowers

The State Bank of India (SBI) has announced a reduction in interest rates for home loan borrowers, offering relief to those paying Equated Monthly Installments (EMIs). This change is due to a revision in the bank’s External Benchmark-Based Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR), which will take effect on the 15th of this month. With this adjustment, SBI aims to reduce the financial burden on its customers.

This decision follows the Reserve Bank of India’s (RBI) recent move to lower the repo rate by 25 basis points to 6.25%. In response, SBI has updated its lending rates to reflect the change. However, there will be no changes to the Marginal Cost of Funds Based Lending Rate (MCLR) or the Base Rate (BPLR).

SBI has been linking home loan interest rates to the RBI’s repo rate under the EBLR system since October 1, 2019. As a result, when the repo rate decreases, EMIs for home loans and other loans linked to EBLR are automatically reduced, providing borrowers with financial benefits.