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SBI Home Loan: If you are thinking of taking a home loan or have already taken a loan from SBI, then there is good news for you! The country's largest public sector bank, State Bank of India (SBI), has given relief to its loan customers by reducing the Marginal Cost Based Lending Rate (MCLR). After this new rate system was implemented from July 15, 2025, taking a loan from SBI has become cheaper than before. This will directly benefit your pocket because now there is going to be some relief in EMI.

How much did SBI reduce interest rates?

SBI has reduced the MCLR of all tenures by 25 basis points (0.25%) to 20 basis points. Earlier, while the range of MCLR was between 8.20% to 9.10%, now it has come down to between 7.95% to 8.90%.

The MCLR cut will directly affect those customers whose loan is linked to MCLR. That is, if your home loan is MCLR based, then now the interest rate will be less and there will be relief in EMI.

Will EMI also be affected?
Suppose your home loan is based on one year MCLR and earlier you had to pay 9% interest. Now the same rate has come down to 8.8%. This will reduce your monthly EMI a little, or if you keep the EMI amount the same, then your loan will end soon i.e. the tenure will be less. This cut is especially beneficial for those customers who have recently taken a loan or are going to reach the reset date soon.

What has changed for EBLR and RLLR customers?
SBI had already fixed its other two major lending rates on June 15, 2025:

EBLR (External Benchmark Lending Rate): 8.15%
RLLR (Repo Linked Lending Rate): 7.75%
Although there has been no recent change in these rates, the reduction in MCLR indicates that the bank is making interest rates flexible and trying to provide relief to customers.

The loan rates based on EBLR and RLLR depend on the reset date of your loan. That is, if your next reset date is near, then you can also get cheaper interest.

New interest rates on SBI home loan
If you are planning to take a new home loan, then SBI is now offering you a loan at a lower interest rate than before:

SBI Home Loan

Know the processing fee too
SBI charges 0.35% processing fee on its home loan.
Minimum amount: ₹2,000
Maximum limit: ₹10,000 (excluding GST)
For example, if you take a loan of ₹30 lakh, you may have to pay a processing fee of around ₹10,000.

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