State Bank of India has reduced its lending rate by up to 25 basis points to pass on to customers the benefit of the RBI repo rate cut announced last week. That makes loans cheaper for new and existing borrowers.
SBI’s external benchmark-linked lending rate now stands at 7.90% as against 8.15% earlier—a downward revision of 25 bps. The marginal cost of funds-based lending rate has been reduced by 5 bps across tenors to 8.70%. The one-year maturity rate has been cut 5 bps to 8.75%. The base rate is down 10 bps at 9.9%.
SBI has also decided to cut the fixed deposit rate by 5 bps for maturity period of two years to less than three years to 6.40%.
The new SBI lending rates are:
- SBI EBLR: 7.90%, down 25 bps
- SBI MCLR: 8.70%, down 5 bps
- One-year maturity: 8.75%, down 5 bps
- SBI base rate: 9.90%, down 10 bps
- SBI FD rates: 6.40%, down 5 bps
The revisions comes into effect on Monday, 15 December 2025. One basis point is one-hundredth of a percentage point.
RBI Repo Rate Revision
On 5 December 2025, the RBI delivered its fourth rate cut of 2025 to reduce the benchmark repo rate to 5.25%.
“Despite an unfavourable and challenging external environment, the Indian economy has shown remarkable resilience,” RBI Governor Sanjay Malhotra had said in his televised monetary policy speech. “The headroom provided by the inflation outlook has allowed us to remain growth supportive.”
Other SBI Lending Rates
- The interest rate on tenor scheme of ‘444 days’ has been revised from 6.60% to 6.45% with effect from 15 December. The MCLR for a period of three months to three years has been reduced by 5 basis points.
Separately, SBI’s Asset Liability Management Committee (ALCO) has approved a 5 bps reduction in the MCLR across tenors from three months to three years.
These revisions will lower EMIs for both existing and new borrowers whose loans are linked to these benchmarks.
Retail customers seeking home, vehicle, and personal loans will benefit from enhanced affordability. MSMEs and corporate borrowers will also experience a reduction in their cost of funds, aiding working capital requirements and supporting business growth.
