In a move that brings welcome relief to borrowers, the State Bank of India (SBI) has announced a reduction in its lending rates, following the Reserve Bank of India's (RBI) recent decision to cut the repo rate.

SBI has reduced both its Repo Linked Lending Rate (RLLR) and External Benchmark Based Lending Rate (EBLR) by 25 basis points. The RLLR now stands at 8.25%, while the EBLR has been adjusted to 8.65%. The revised rates will come into effect starting April 15, benefiting both new and existing borrowers—especially those with large home loans.

This rate cut follows the RBI’s second consecutive reduction of the repo rate, which now stands at 6%, in a bid to stimulate economic growth. Since October 2019, SBI has linked its home loan interest rates to the EBLR, meaning that any change in the repo rate directly impacts retail loans such as home and personal loans. Selected loans will continue under the RLLR framework.

Deposit Rates Also Adjusted

Alongside lending rate cuts, SBI has also revised fixed deposit rates. Interest on deposits up to ₹3 crore for tenures of 1–2 years has been reduced by 10 basis points to 6.70%, while 3-year deposits will now earn 6.90% instead of 7%. A special deposit scheme, ‘Amruta Vrishti’, offering a 7.05% interest rate for 444 days, has been launched. Senior citizens will receive 7.55% under this scheme.

Other Banks Follow Suit

SBI is not alone in this move. HDFC Bank has reduced interest on savings accounts by 25 basis points, offering 2.75% for standard balances and 3.25% for amounts above ₹50 lakh. Bank of India has also slashed home loan rates by 25 basis points, now starting at 7.9%, depending on the borrower's credit score. The bank has also withdrawn its 400-day special deposit scheme.

These changes across major banks are set to take effect from April 15, signaling a broader trend of easing interest rates across the banking sector.