SBI Cuts Loan and Deposit Interest Rates Following RBI Repo Rate Reduction
In a move set to bring relief to borrowers, the State Bank of India (SBI) has announced a reduction in both loan and deposit interest rates. This decision follows the Reserve Bank of India’s (RBI) recent move to lower the repo rate, prompting the country’s largest public sector lender to align its lending and deposit rates accordingly.
SBI declared a 25 basis point cut in its Repo-Linked Lending Rate (RLLR), bringing it down to 8.25 percent. Similarly, the External Benchmark-Based Lending Rate (EBLR) has also been reduced by 25 basis points and now stands at 8.65 percent.
The revised rates have come into effect from April 14, and are applicable to both existing and new borrowers. The reduction is expected to make home loans, personal loans, and other retail credit more affordable.
Impact on Deposits
SBI has also revised its fixed deposit (FD) interest rates, trimming them by 10 to 20 basis points across different tenures. Key changes include:
- FDs up to ₹3 crore for a tenure of 1–2 years will now earn 6.70%, down from 6.80%.
- FDs for 2–3 years will earn 6.90%, reduced from 7.00%.
- For bulk deposits above ₹3 crore with a maturity of 180–210 days, the interest rate has been cut by 20 basis points to 6.40%.
Broader Implications
The rate cut is seen as a step towards easing financial burdens amid ongoing economic uncertainties. It will not only support individual borrowers but also potentially stimulate spending and investment, contributing to economic activity.
Financial analysts view this adjustment as part of a broader trend among banks to pass on the benefits of lower repo rates to consumers, especially as inflation stabilizes and the RBI signals a more accommodative monetary stance.
Borrowers are encouraged to consult with their branches or check the official SBI website to understand how these changes may affect their existing loans or fixed deposits.
