SBI Lowers Lending Rates: Great News for Borrowers

SBI Reduces Lending Rates by 0.5%

The State Bank of India (SBI) has cut its lending rates by 0.5%. This is good news for both current and new borrowers.

New Lending Rates

• SBI’s repo linked lending rate (RLLR) is now 7.75%.
• External benchmark based lending rate (EBLR) is down to 8.15% from 8.65%.

These changes started on June 15, 2025.

Lower Interest Rates on Fixed Deposits

SBI has also lowered interest rates on fixed deposits by 0.25%. This is for amounts up to Rs 3 crore. The new deposit rates also started on June 15.

• 1-2 year term deposits: 6.50% (down by 0.25%).
• 2-3 year deposits: 6.45%.
• 3-5 year deposits: 6.30%.
• 5-10 year deposits: 6.05%.
• Special ‘444-day’ Amrit Vrishti scheme: 6.60% (down from 6.85%).

Extra Benefits for Senior Citizens

• Senior citizens get an extra 0.5% over the card rate.
• Super senior citizens receive an additional 0.6%.

Matching RBI’s Growth-Supportive Plan

SBI’s rate changes match the RBI’s growth-supportive plan. The bank balances borrower benefits and depositor expectations.

RBI’s Policy Easing

The Reserve Bank of India (RBI) made a big policy change on June 6. It reduced the benchmark repo rate by 0.5% to 5.5%. This is the biggest reduction in four years.

The RBI aims to boost economic growth. Growth had slowed to 6.5% in FY25.