State Bank of India Cuts Lending Rates

In a significant move to stimulate economic growth, the State Bank of India (SBI) has reduced its lending rates by 25 basis points. This decision follows the Reserve Bank of India’s (RBI) second consecutive policy rate cut, aiming to make loans more affordable for both existing and new borrowers.

Revised Rates Effective from April 15, 2025

The revised rates will see SBI’s repo linked lending rate (RLLR) drop to 8.25 per cent, with the external benchmark based lending rate (EBLR) now at 8.65 per cent. Additionally, SBI has trimmed its deposit rates by 10 to 25 basis points, affecting various fixed deposit schemes.

Impact on Deposit Schemes

Fixed deposits up to Rs 3 crore with a 1–2 year tenure will now offer 6.70 per cent interest, while deposits for two to less than three years will earn 6.90 per cent. The 'Amrit Vrishti' deposit scheme for 444 days will offer 7.05 per cent, with higher rates for senior and super senior citizens.

Other Banks Follow Suit

Following SBI’s lead, HDFC Bank and Bank of India have also adjusted their interest rates. HDFC Bank reduced savings account rates, while Bank of India lowered home loan interest rates and withdrew its 400-day special deposit scheme.