SBI Slashes Loan Rates After RBI Move — Will Your EMIs Drop Or FD Returns Dip? Here's What It Means for You

If you're planning to take a loan or invest in a fixed deposit, there’s some important news from the State Bank of India (SBI) that could affect your finances. Following the Reserve Bank of India’s recent 50 basis point cut in the repo rate, SBI—India’s largest public sector lender—has slashed its key lending rates by up to 0.50%.

This is good news for borrowers, especially if you have a floating-rate home loan or are considering one.

According to the SBI website, starting June 15, 2025, SBI’s External Benchmark Rate (EBR), which is used to calculate interest rates on most retail loans, including home loans, has been reduced from 8.65% to 8.15%. This means your EMIs could become slightly more affordable. The EBR is based on the repo rate (now 5.5%) plus a fixed spread of 2.65%.

However, SBI has not changed its Marginal Cost of Funds Based Lending Rate (MCLR). So, if your loan is MCLR-linked, the rates stay the same. The one-year MCLR continues at 9.00%, while other tenures range from 8.20% to 9.10%.

If you’re eyeing an SBI home loan, interest rates now range from 7.50% to 8.45%, depending on your CIBIL score. For Maxgain overdraft home loans, rates are between 7.75% and 8.70%. Top-up home loans are slightly higher, from 8% to 10.50%.

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All these are effective from June 15, and the rate you get depends on your credit profile, loan amount, and tenure.

Your CIBIL score plays a crucial role in determining what rate you'll be offered. The score is a three-digit summary of your credit history, ranging from 300 to 900. A higher score means better chances of securing a lower interest rate.

On the flip side, if you’re a saver or retiree investing in SBI’s fixed deposits, there’s a small tweak to be aware of. SBI has cut the interest rate on its popular “Amrit Vrishti” special FD scheme. The new rate for the 444-day tenure is 6.60%, down from 6.85%, effective June 15.

This applies to general citizens, while senior and super senior citizens continue to get additional rate benefits. Regular FD rates remain unchanged.

These changes come just days after other major banks like ICICI Bank, HDFC Bank, and Canara Bank also revised their FD rates after the RBI’s policy decision.

Will Your EMIs Drop or FD Returns Dip?

With SBI slashing its lending rates following the RBI’s 50 basis point repo rate cut, borrowers could see some relief in the form of lower EMIs, especially on home loans linked to the bank’s External Benchmark Lending Rate (EBLR), now revised to 8.15%.

However, there’s a flip side for savers: the interest rate on SBI’s special Amrit Vrishti FD scheme has been reduced to 6.6% from 6.85%. So, while loan repayments may get a little lighter, fixed deposit returns might take a modest hit.