Bank Lending Rate Update: The effect of 25 basis point reduction in repo rate rates of Reserve Bank of India (RBI) is now visible. State Bank of India (SBI), the country’s largest public sector bank, has announced a reduction in its loan interest rates by 25 basis points.
Besides, the interest rates of Indian Overseas Bank have also been reduced. Which will directly benefit the customers. SBI has increased its External Benchmark Linked Rate (EBLR) to 7.90 percent. Also, SBI has decided to reduce the Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points. The new interest rates will come into effect from December 15, 2025.
Changes in SBI interest rates
SBI has given relief in its loan rates. The bank has reduced MCLR by 5 basis points for all tenors. Due to which one year MCLR has reduced from 8.75 percent to 8.70 percent. Along with this, SBI has also decided to reduce the base rate/BPLR from 10 percent to 9.90 percent.
FD interest rate also changed
SBI has reduced the interest rate on fixed deposits with tenure less than 2 to 3 years to 6.40 percent. At the same time, it has been decided to reduce the interest on 444 day special FD scheme Amrit Vrishti from 6.60 percent to 6.45 percent. However, the bank has not made any changes in all other maturity FD rates.
Indian Overseas Bank’s interest rate also changed
Indian Overseas Bank has decided to increase its repo linked lending rate from 8.35 percent to 8.10 percent. Also, MCLR has been reduced by 5 basis points for the period from 3 months to 3 years. This decision of banks will directly benefit the customers. EMI of home loan, personal loan, vehicle loan etc. will be reduced.
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