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Big shock to loan takers on Diwali, country’s largest bank did not make loans cheaper

admin | October 15, 2025 6:22 PM CST

Big shock to loan takers on Diwali, country's largest bank did not make loans cheaper

State Bank of India

The country's largest government bank, State Bank of India (SBI), has not made any change in its loan interest rates for October 2025. The bank has kept its external benchmark rates like MCLR i.e. Margin Cost of Funds Based Leading Rate and Repo Linked Lending Rate (RLLR) the same as before.

In the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) held on 1 October 2025, the repo rate was kept constant at 5.5%. However, banks have the freedom to reduce their loan interest rates if needed because the repo rate has been reduced by 1% (100 basis points) earlier this year, the effect of which is not yet fully visible.

SBI's new MCLR rates

The bank's MCLR rates range between 7.90% to 8.85% for different tenures.

Overnight and 1 month rate: 7.9%
3 Month Rate: 8.3%
6 Month Rate: 8.65%
1 year rate: 8.75%
2 year rate: 8.8%
3 year rate: 8.85%

What is MCLR?

MCLR i.e. Margin Cost of Funds Based Leading Rate is the base rate by which banks decide how much interest to charge on floating rate loans like home loan, personal loan or car loan. If the bank reduces MCLR, the EMI of the customers may reduce or the loan may end early. Although new loans are now linked to EBLR (External Benchmark Lending Rate), old loan customers have the option to shift from MCLR to EBLR.

SBI Home Loan Interest Rates (Applicable from 1 August 2025)
Typical home loan rates: 7.50% to 8.70%
MaxGain Overdraft Loan Rates: 7.75% to 8.95%
Top-up Home Loan: 8.00% to 10.75%
Top-up (OD) Loan: 8.25% to 9.45%

processing fee

SBI's processing fee on home loan and top-up loan is 0.35% of the loan amount, subject to a minimum of Rs 3,000 and a maximum of Rs 12,000 (GST extra).

SBI Fixed Deposit (FD) Interest Rates

SBI offers 3.05% to 6.60% interest (which also includes Amrit Vrishti Special Deposit) to general customers. Rates for senior citizens range from 3.55% to 7.10%, applicable on FDs with tenures ranging from 7 days to 10 years. Overall, SBI has kept its interest rates stable in October 2025. This indicates that the bank is currently monitoring the market situation and the possibility of change in interest rates in the near future is limited.