Top News

The country's largest lender State Bank of India (SBI) has reduced its interest rate by 25 basis points after the policy rate cut by the Reserve Bank. Due to which the loan has become cheaper for existing and new borrowers. With this fresh rate cut, SBI's External Benchmark Linked Interest Rate (EBLR) will be reduced by 25 basis points to 7.90 percent. SBI said in a statement that the revised rates will be effective from December 15, 2025. This interest rate cut comes after the RBI last week decided to cut the repo rate by 25 basis points for the fourth time this year to support growth.

SBI also changed the interest rates in these

• The bank has also reduced MCLR by 5 basis points for all tenors. With this change, MCLR for one year maturity will reduce to 8.70 percent from the current 8.75 percent.
• The bank has announced that it has reduced the Base Rate/BPLR from the existing 10 per cent to 9.90 per cent, effective December 15.
• The bank has also reduced the interest rate on fixed deposits from 2 years to at least 3 years by 5 basis points to 6.40 percent, which is effective from December 15. However, the bank has kept interest rates on schemes with other maturities unchanged, indicating pressure on deposit mobilization.
• The interest rate of 444 days special scheme, Amrit Vrishti has been revised from 6.60 percent to 6.45 percent with effect from December 15.

IOB also gave relief in interest rates

Another government bank, Indian Overseas Bank (IOB) has also announced a reduction in its loan rates from December 15, 2025. The bank has reduced its EBLR – specifically the Repo Linked Lending Rate (RLLR) – by 25 basis points, from 8.35 per cent to 8.10 per cent. IOB said in a statement that customers are getting the full benefit of the repo rate cut. Additionally, the bank has approved a reduction in MCLR by 5 basis points for all tenors ranging from three months to three years.

The bank said that these amendments will reduce the EMIs of existing and new borrowers whose loans are linked to these benchmarks. Retail customers seeking home, vehicle and personal loans will benefit from increased affordability. MSME and corporate borrowers will also experience reduction in their cost of funds, which will help in meeting working capital requirements and aiding business growth.