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New Delhi. Government bank State Bank of India (SBI) has given big relief to crores of its customers. After the policy rate cut by the Reserve Bank, SBI has also decided to reduce its lending rates. This will directly benefit both new and old borrowers, because now home loans, personal loans and other retail loans will become cheaper.

EBLR cut by 25 basis points

SBI has reduced its External Benchmark Linked Rate (EBLR) by 25 basis points. After this cut, EBLR has reduced to 7.90 percent. These new rates will be applicable from December 15, 2025. For customers whose loan is linked to EBLR, their EMI may be reduced or the loan tenure may be reduced.

Relief in MCLR also

The bank has not only cut the EBLR but also the Marginal Cost of Funds Based Lending Rate (MCLR). MCLR has been reduced by 5 basis points for all tenures. MCLR with one year tenure has now reduced from 8.75% to 8.70%. Minor reductions in other maturity tenures have also been made, which will benefit business and retail loan takers.

Base rate and BPLR also decreased

SBI has also revised its Base Rate/BPLR. It has been reduced from 10% to 9.90%, which will be effective from December 15, 2025. This will provide relief to those customers whose old loans are linked to the base rate.

Little impact on fixed deposits

Along with making loans cheaper, the bank has also slightly reduced the interest rates of some fixed deposit schemes. The interest rate on FDs with tenure less than two years to three years has been reduced by 5 basis points to 6.40%. However, there has been no change in the rates of other FD maturity buckets.

Changes in ‘Amrit Vrishti’ scheme

The interest rate on SBI’s popular ‘444 day’ Amrit Vrishti FD scheme has also been reduced. Now you will get 6.45% interest on investing in this scheme, which was earlier 6.60%. The new rates will also be applicable from December 15.

What does this decision mean for customers?

While on one hand this decision will provide relief to loan takers and reduce their EMI burden, on the other hand FD investors may get slightly less returns in some schemes. Overall, this step of SBI is considered important towards encouraging credit in the economy and providing relief to the customers.