SBI Home Loan Rate Cut: In a major relief for borrowers, State Bank of India (SBI) — the country’s largest public sector bank — has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by up to 0.25%, effective July 15, 2025. This move is set to bring down home loan and car loan EMIs for millions of customers.
If you have a home loan linked to MCLR or are planning to apply for one, this is good news. Here's what you need to know.
New SBI MCLR Rates – Effective from July 15, 2025
SBI has revised MCLR across various tenures. Here are the updated rates:
| Tenure | Previous MCLR | New MCLR |
|---|---|---|
| Overnight | 8.20% | 7.95% |
| 1 Month | 8.20% | 7.95% |
| 3 Months | 8.55% | 8.35% |
| 6 Months | 8.90% | 8.70% |
| 1 Year | 9.00% | 8.80% |
| 2 Years | 9.05% | 8.95% |
| 3 Years | 9.10% | 8.90% |
These rate cuts could directly impact existing floating rate home loans, especially those linked to MCLR.
How This Affects Borrowers
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Existing MCLR-linked loans: Borrowers with floating rate loans tied to MCLR will likely see lower EMIs or a reduction in loan tenure depending on their loan agreement and reset date.
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New borrowers: Lower MCLR means more affordable interest rates for new home loan or car loan seekers.
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Top-up loans: If you're considering a top-up home loan from SBI, this might be the ideal time to apply.
Other SBI Lending Rates
Besides MCLR, SBI has also shared its current EBLR and RLLR:
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External Benchmark Linked Rate (EBLR): 8.15% + CRP + BSP
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Repo Linked Lending Rate (RLLR): 7.75% + CRP
(CRP: Credit Risk Premium, BSP: Base Spread)
Note: These rates were effective from June 15, 2025, and apply to new loans or when existing loans are reset.
📉 SBI Home Loan Interest Rates (as of June 15, 2025)
| Loan Type | Interest Rate |
|---|---|
| Regular Home Loan | 7.50% to 8.45% |
| Maxgain Overdraft Home Loan | 7.75% to 8.70% |
| Top-up Home Loan | 8.00% to 10.50% |
These rates are CIBIL score-dependent. A higher credit score means better chances of getting loans at lower interest rates.
Processing Fees
SBI charges a processing fee of 0.35% of the loan amount (exclusive of GST):
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Minimum: ₹2,000
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Maximum: ₹10,000
What is a CIBIL Score?
CIBIL is one of India’s RBI-approved credit information agencies that track your credit history and score. A high CIBIL score (750+) increases your chances of:
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Getting a loan approved faster
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Receiving better interest rates
Other authorized credit bureaus include Experian, Equifax, and CRIF Highmark.
Bottom Line
SBI’s MCLR rate cut is a welcome move, especially for home buyers and existing borrowers with MCLR-linked loans. With the EMI burden expected to reduce, now may be a great time to:
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Apply for a new home loan
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Refinance your existing loan
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Take a top-up loan at lower interest
Before you decide, compare reset dates, loan types, and your credit score to make the most of this rate reduction.
