SBI cuts home loan rate: Following the decision of the Reserve Bank of India (RBI) announcement to cut repo rates by 25 basis points (bps), the State Bank of India (SBI) – the country’s largest public sector bank SBI – has reduced the home loan interest rate by 25 basis points.
The PSU bank has announced a reduction in its External Benchmark-based Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) applicable to various loans. However, the bank has not announced any changes in marginal cost-based lending rates (MCLR), base rate, and Benchmark Prime Lending Rate (BPLR).
What is EBLR or External Benchmarks Lending Rate?
It’s a reference rate or external benchmark that banks use to set interest rates for loans. In most cases, it is the repo rate. This has been mandatory since October 2019.
Previous EBLR: 9.15 per cent + CRP + BSP
Revised EBLR: 8.90 per cent + CRP + BSP
What is RLLR or Repo Linked Lending Rate
As the name suggests, RLLR is linked to the repo rate set by the Reserve Bank of India (RBI).
Previous RLLR: 8.75 per cent + CRP
Revised RLLR: 8.50 per cent + CRP
With effect from February 15, 2025, here are the SBI rates for home loan
- Regular Home Loan Rates: 8.25 per cent to 9.20 per cent
- Home Loan Maxgain Rates: 8.45 per cent to 9.40 per cent
- Tribal Plus Home Loan Rates: 8.35 per cent to 9.30 per cent
- Top Up Home Loan Rates: 8.55 per cent to 11.05 per cent
- Top Up (OD) Home Loan Rates: 8.75 per cent to 9.70 per cent
- Loan Against Property (P-LAP): 9.75 per cent to 11.05 per cent
- Reverse Mortgage Loan (RML): 11.30 per cent
- YONO Insta Home Top Up Home Loan: 9.10 per cent
How much will you save on Rs 50 lakh loan?
Let’s see how much will a customer be able to save with the reduction in home loan interest rates. For this calculation, we are considering that loan rates will be reduced from 9.20 per cent to 8.95 per cent for a tenure of 20 years.
Monthly EMI with 9.20 per cent interest rate = 45,631
Monthly EMI with 8.95 per cent interest rate = 44,826
Total saving – 45,631 – 44,826 = Rs 805
So a person will be able to save approximately Rs 805.
