RBI Rate Cut Spurs Banks To Reduce Lending Rates
Good news for borrowers! Following the RBI’s 25-basis-point repo rate cut last week, the State Bank of India (SBI) has stepped up to pass on the benefit. Whether you’re planning a new loan or already paying EMIs, SBI’s cuts across MCLR, EBLR, and RLLR, along with revisions in BPLR and Base Rate, mean lower interest rates and smaller EMIs. Your wallet will breathe a little easier, and borrowing just got more affordable for both retail and corporate customers. It’s time to celebrate smarter loans and cost-saving opportunities!
SBI Latest MCLR Rates: Previous vs Revised (December 2025)
| Tenor | Previous MCLR (%) | Revised MCLR (%) |
|---|---|---|
| Overnight & One-month | 7.90 | 7.85 |
| Three-month | 8.30 | 8.25 |
| Six-month | 8.65 | 8.60 |
| One-year (widely used for retail loans) | 8.75 | 8.70 |
| Two-year | 8.80 | 8.75 |
| Three-year | 8.85 | 8.80 |
SBI EBLR And RLLR Rates (Effective December 15, 2025)
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EBLR (External Benchmark Lending Rate):
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Previous: 8.15% + CRP + BSP
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Revised: 7.90% + CRP + BSP
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Benchmark portion reduced by 25 basis points
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RLLR (Repo Linked Lending Rate):
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Previous: 7.75% + CRP
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Revised: 7.50% + CRP
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Directly linked to RBI repo rate, reflecting a 25-basis-point cut
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Borrowers with EBLR- and RLLR-linked loans will see lower interest rates and EMIs, depending on their individual credit risk premium (CRP) and the bank’s spread (BSP).
SBI BPLR And Base Rate
State Bank of India (SBI) has changed its Benchmark Prime Lending Rate (BPLR) and Base Rate, which will become effective on December 15, 2025. The BPLR, on which other corporate and retail loans are pegged, has been set at 14.65 percent per annum, and the Base Rate, which is generally referred to in pricing loans that are pegged to it, has been adjusted to 9.90 percent. These changes are part of SBI’s effort to pass on the benefits of the recent RBI repo rate reduction to borrowers. The cut will help reduce borrowing rates, lower EMIs, and provide relief to both retail and corporate customers.