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The country's largest bank, State Bank of India, has cut its interest rates by 50 basis points. This move of the State Bank has come after the Reserve Bank reduced the repo rate. The reduction in interest rates will make loans cheaper, which will benefit existing borrowers and those taking further loans. After the interest rate cut, SBI's new repo-linked lending rate (RLLR) interest rate will now be 7.75 percent.

Decision after Reserve Bank's repo rate cut

SBI has also cut the external benchmark-based lending rate by 50 basis points, after which the new rates will come down from 8.65 percent to 8.15 percent. According to the information given on the official website of SBI, the new rates have come into effect from June 15, 2025. On June 6, the Reserve Bank reduced the repo rate by 50 basis points, after which the repo rate reached a low of 6.5 percent in the financial year 2025. The six-member policy committee of the Reserve Bank, headed by RBI Governor Sanjay Malhotra, voted in favor of cutting the repo rate.

Interest rate on FD also reduced
The Reserve Bank also decided to reduce the cash reserve ratio by 100 basis points. After the Reserve Bank's decision, most banks have reduced the interest rate on their loans and those who have not reduced it may also do so soon. Apart from this, SBI also decided to reduce the interest rate on deposits by 25 basis points. The new deposit rate also came into effect from June 15. The interest rate on 1-2 year fixed deposits has also been reduced by 25 basis points and now it is 6.50 percent. The bank has also reduced the interest rate in Amrit Vrishti Yojana. Senior citizens have been offered an additional 50 bps points on the card rate.

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