State Bank of India (SBI), the country’s largest public sector bank, has not changed its lending rates for May 2025. This follows a 0.25% cut in April 2025 after the RBI reduced the repo rate.
After lowering the MCLR in April, SBI kept the same rates for May. Both the Marginal Cost of Funds Based Lending Rate (MCLR) and the Repo Linked Lending Rate (RLLR) remain unchanged.
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MCLR Cut in April
In April 2025, the Reserve Bank of India (RBI) reduced the repo rate from 6.25% to 6.00%. Following this, SBI cut its external benchmark linked loan rates by 0.25%, giving relief especially to home loan borrowers.
SBI’s New External Benchmark Rate (EBR)
Since April 15, 2025, SBI’s EBR is set at 8.65%, which includes:
RBI Repo Rate: 6.00%
Bank Spread: 2.65%
Total EBR = 6.00% + 2.65% = 8.65%
This rate is used for floating loans like home and car loans.
What is RLLR (Repo Rate Linked Lending Rate)?
RLLR is also linked to the repo rate, but SBI adds a Credit Risk Premium (CRP) based on your CIBIL score and risk. The new RLLR is 8.25%, which includes 6% repo rate plus 2.25% premium.
MCLR Rates Stayed Same in May 2025
SBI’s MCLR-based interest rates remain unchanged:
Overnight: 8.20%
1 Month: 8.20%
3 Months: 8.55%
6 Months: 8.90%
1 Year: 9.00%
2 Years: 9.05%
3 Years: 9.10%
Since October 1, 2019, banks like SBI mostly give loans linked to external benchmarks instead of MCLR. Home loan rates at SBI depend on your CIBIL score.
Current Interest Rates
General Loans: 8% to 8.95%
Maxgain OD Loan: 8.25% to 9.15%
Top-up Loan: 8.30% to 10.80%
All these rates apply from April 15, 2025.
Customer Benefits
The stable rates benefit both existing and new borrowers. EMIs won’t rise, and it’s a good time for new loan seekers. If your loan is linked to EBR or RLLR, you will gain from these rates.
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