By News Desk 
Following the Reserve Bank of India’s (RBI) recent decision to cut the repo rate by 50 basis points, several banks have responded by lowering their lending rates. Joining this trend, the State Bank of India (SBI)—the country’s largest public sector bank—has announced a 50 basis point reduction in its lending rates. Earlier, on June 12, Bank of Baroda had also slashed its interest rates, making home loans more affordable for borrowers.
A cut in the repo rate reduces the borrowing cost for banks from the central bank, enabling them to extend cheaper loans to customers, especially for home financing.
The new interest rates announced by SBI will take effect from June 15, 2025. Here’s a detailed look at the updated rates across various loan categories.
SBI Home Loans Now More Affordable
SBI’s revised home loan interest rates will now range between 7.50% and 8.45%, depending on the borrower’s CIBIL score. For SBI MaxGain overdraft home loans, the interest rates have been set between 7.75% and 8.70%. Meanwhile, top-up home loans will now carry interest rates between 8% and 10.50%.
The updated home loan interest structure will be applicable starting Saturday, June 15, 2025.
SBI home loans are typically linked to the External Benchmark Lending Rate (EBLR). The current EBLR has now been revised to 8.15%. However, the final interest rate offered to each customer will still depend on variables such as credit score, loan tenure, and borrower profile.
SBI Revises External Benchmark Rate (EBR)
In a significant move, SBI has reduced its External Benchmark Rate (EBR) from 8.65% to 8.15%, effective immediately. This benchmark rate plays a critical role in determining the interest on various floating rate loans, including home loans and loans extended to the MSME sector.
No Change in MCLR Rates
As of June 14, 2025, SBI has not made any changes to its Marginal Cost of Funds Based Lending Rate (MCLR). These rates remain unchanged across various tenures:
- Overnight & One-month MCLR: 8.20%
- Three-month MCLR: 8.55%
- Six-month MCLR: 8.90%
- One-year MCLR: 9.00%
- Two-year MCLR: 9.05%
- Three-year MCLR: 9.10%
The unchanged MCLR implies that borrowers with loans tied to this rate will not see immediate benefits, although the EBR and EBLR reductions will offer relief to many.
Conclusion
With SBI slashing lending rates after the RBI’s repo rate cut, borrowers—especially those seeking home loans—stand to benefit significantly. However, those with loans linked to MCLR may have to wait longer for any downward revision. As always, prospective borrowers should compare rates and terms before making a decision.