If you are dreaming of buying your own house or wondering when the interest rates on home loans will come down, then this is a big relief news for you. After the Reserve Bank of India (RBI) cut the repo rate by 50 basis points, many banks have reduced their lending rates. In this episode, now India’s largest public sector bank, State Bank of India (SBI) has also announced a 50 basis point cut in its lending rates.
Before SBI, on June 12, the Bank of Baroda also reduced its interest rates, making home loans cheaper. Let us know how much SBI’s EBLR, MCLR, and home loan interest rates have changed since June 15, 2025, and how your CIBIL score can help you in this.
How cheap has SBI home loan become
SBI has cut its lending rates, which will directly benefit home loan borrowers. These new rates will be effective from Saturday, June 15, 2025.
Normal Home Loan
Now the interest rates of SBI home loans will range from 7.50% to 8.45% depending on the CIBIL score of the borrower. That is, if your CIBIL score is good, you can get a home loan at an attractive rate of 7.50%.
SBI Home Loan MaxGain OD
The interest rates on this will be between 7.75% to 8.70%.
The interest rates on top-up home loans will be between 8% to 10.50%.
Why SBI home loans are linked to EBLR
State Bank of India home loans are linked to the External Benchmark Lending Rate (EBLR). EBLR is the rate at which banks link their floating interest rates. SBI has reduced its EBLR from 8.65% to 8.15%, which will be effective immediately.
This is the interest rate on the basis of which the bank determines the interest rate for various floating loan rates including home loans and MSME loans. The interest rate may vary for different individuals depending on their CIBIL score, loan tenure, and other factors. This means that a good credit history can get you a lower interest rate.
SBI did not make any change in MCLR
State Bank of India has not made any change in the Marginal Cost of Funds Based Lending Rate (MCLR) till June 14, 2025. These rates remain unchanged.
Current MCLR rates:
Overnight and one-month MCLR: 8.20%
Three-month MCLR: 8.55%
Six-month MCLR: 8.90%
One-year MCLR: 9.00%
Two-year MCLR: 9.05%
Three-year MCLR: 9.10%
MCLR is the minimum interest rate at which banks can lend to their customers. Due to no change in this, there will be no direct impact on loans that are linked to MCLR, but there will be a direct benefit on EBLR-linked loans.
What does a repo rate cut mean
The repo rate is the interest rate at which RBI lends money to commercial banks. When RBI cuts the repo rate, banks get loans from the central bank at lower rates. The direct benefit of this is that banks are also able to provide home loans and other retail loans to customers at cheaper rates.