SBI- The country’s largest lender, State Bank of India (SBI), has given a big gift to its customers. Following a cut in the Reserve Bank of India’s policy rate, SBI has reduced its lending rates by 25 basis points, making loans cheaper for both existing and new borrowers. With this latest reduction, SBI’s External Benchmark Linked Rate (EBLR) will come down by 25 basis points to 7.90%. The revised rates will be effective from December 15, 2025.
5 basis points cut in MCLR as well
The bank has also reduced the Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points across all tenures. With this revision, the one-year maturity MCLR will be reduced from the existing 8.75% to 8.70%. Similarly, other maturity rates have also been reduced by 5 basis points to 8.75% and 8.80%, respectively. The bank said it has reduced the Base Rate/BPLR from the current 10% to 9.90%, effective from December 15.
In addition, SBI has decided to cut the fixed deposit interest rate by 5 basis points to 6.40% for maturities of more than two years and less than three years, effective December 15. However, the bank has kept interest rates unchanged for other maturity buckets. SBI has also reduced the interest rate on its special ‘444-day’ Amrit Vrishti scheme. The interest rate will be lowered from 6.60% to 6.45% with effect from December 15.
Indian Overseas Bank also announces rate cut
Another public sector bank, Indian Overseas Bank (IOB), has also announced a reduction in its lending rates effective December 15, 2025. In a statement, IOB said it has reduced its External Benchmark Lending Rate (EBLR)—specifically the Repo Linked Lending Rate (RLLR)—by 25 basis points from 8.35% to 8.10%, ensuring that customers get the full benefit of the policy rate cut.
Additionally, the bank’s Asset Liability Management Committee (ALCO) has approved a reduction of 5 basis points in the Marginal Cost of Funds-Based Lending Rate (MCLR) for all tenures ranging from three months to three years. The bank said these changes will reduce the Equated Monthly Installments (EMIs) for both existing and new borrowers whose loans are linked to these benchmarks.
