On the occasion of Independence Day 2025, the country’s largest public sector bank, State Bank of India (SBI), has given relief to its crores of customers. The bank has announced a cut in the interest rates of home loans and car loans. This decision will directly benefit those customers who have taken a loan on a floating rate. Now their monthly installment, i.e., EMI, will be reduced, or they will be able to repay the loan quickly. Also, new customers will get an opportunity to take a loan at a lower interest rate.
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Reduction in MCLR
SBI has given relief to the customers by reducing its Marginal Cost of Funds-Based Lending Rate (MCLR). The bank has reduced MCLR by 0.05 percent. The new rates have come into effect from August 15, 2025. Now, overnight and one-month MCLR have come down from 7.95 percent to 7.90 percent. The three-month rate has come down from 8.35 to 8.30 percent, the six-month rate from 8.70 to 8.65 percent, the one-year rate from 8.80 to 8.75 percent, the two-year rate from 8.85 to 8.80 percent, and the three-year MCLR from 8.90 to 8.85 percent.
Relief in EMI and benefit to new customers
This change is especially beneficial for those who have taken a home loan on a floating rate. Since the floating rate changes from time to time, the burden of EMI also reduces when the interest rate is reduced. New customers who are planning to buy a house or car will now be able to get a loan at a cheaper interest rate. This will save on EMI, and it will be easier to repay the loan.
Importance of processing fee and credit score
SBI charges a 0.35 percent processing fee on a home loan. GST has to be paid separately on this. The minimum limit of fees has been fixed at Rs 2000, and the maximum limit at Rs 10,000. Customers must check their CIBIL score before taking a loan from the bank. Customers with a better CIBIL score can easily get a loan at a lower interest rate.
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Financial strength and dreams will get support
This decision of SBI is a great Independence Day gift for the customers. The reduction in interest rates will not only reduce the burden of EMI but will also make it easier to fulfill the dream of buying a house or a car. This change will bring relief to the pockets of common people and will help in the direction of financial stability.