Customers of the State Bank of India (SBI) have received positive news regarding repo rate cuts made by the Reserve Bank of India (RBI), following SBI’s announcement of a reduction in interest on multiple loans (including home) and, as a result, directly affecting the reduction of EMIs (equal monthly installment) for millions of borrowers.

SBI has announced a reduction in rates by a maximum of up to 25 basis points on all available rates through: MCLR, EBLR, RLLR, BPLR, and Base Rate. The new rates go into effect on December 15, 2025.

This follows the fourth time in a row that the RBI cut the repo rate. The latest cut is for 25 basis points and brings the repo rate down to 5.25%. The benefits associated with the RBI’s monetary policy to stimulate growth are now beginning to be available to the general population.

Also Read –Tata Sierra vs Hyundai Creta – Which SUV is More Powerful in Features and Price

Currently, SBI charges a minimum interest rate of approximately 7.4 percent on home loans. For personal loans, this rate is around 9 to 10 percent. The new decision will further reduce interest rates for both home and personal loans, resulting in significant long-term savings for customers.

What changes have been made to MCLR?

The overnight and one-month MCLR has been reduced to 7.85%, three-month to 8.25%, six-month to 8.60%, one-year to 8.70%, two-year to 8.75%, and three-year to 8.80%. This will also reduce the interest rates on MCLR-linked loans.

Relief in EBLR and RLLR as well

SBI has reduced its EBLR to 7.90% + CRP + BSP, which was previously 8.15% + CRP + BSP. Simultaneously, the RLLR has been reduced to 7.50% + CRP, which was previously 7.75% + CRP. Borrowers linked to external benchmarks will benefit from reduced EMIs according to their risk profile.

In addition, the Benchmark Prime Lending Rate (BPLR) has been reduced to 14.65 percent and the Base Rate to 9.90 percent, effective from December 15th.

 Read Also – iQOO 15 vs Realme GT 8 Pro- Which One Has Better Durability, Camera & Performance?

How much will the EMI decrease?

Let’s say someone takes a home loan of Rs. 30 lakh for 20 years at an interest rate of 8 percent. Currently, their EMI is approximately Rs. 25,093. After a 25 basis point reduction in the interest rate, the EMI will come down to approximately Rs. 24,628. This means a saving of several hundred rupees per month and over a lakh rupees in the long run.

Overall, this decision by SBI is a major relief for home loan borrowers and businesses. Economic experts believe that lower interest rates will increase purchasing power and encourage home buying and investment.