SBI Slashes Lending & Deposit Rates After RBI's Jumbo Repo Cut

In a move reflecting the broader shift in monetary policy, the State Bank of India (SBI) has announced a reduction in its key lending and deposit rates. The revision follows the Reserve Bank of India’s (RBI) decision on June 6 to cut the repo rate by 50 basis points, bringing it down to 5.5%, the lowest level in the last four years.

As a result, SBI’s Repo Linked Lending Rate (RLLR) has been lowered to 7.75%, while the External Benchmark Lending Rate (EBLR) has been brought down from 8.65% to 8.15%. These new rates take effect on June 15, 2025. The change is expected to directly impact borrowers, especially those with SBI home loan, by reducing their interest burden.

SBI’s move is aligned with the RBI’s broader strategy to inject liquidity into the banking system, which also saw the Cash Reserve Ratio (CRR) being reduced by 100 basis points to 3%. This measure is estimated to release nearly ₹2.5 lakh crore into the financial system by the end of the year.

For existing and prospective homebuyers, this translates into a lower SBI home loan interest rate, a welcome change in a market that has seen high credit costs over the past year. With this revision, the home loan percentage in SBI becomes more competitive, potentially encouraging demand in the residential segment.

On the deposit front, SBI has revised its fixed deposit rates downward by 25 basis points for amounts up to ₹3 crore. Under the new structure, term deposits with terms of 1 to 2 years will yield 6.50%, those maturing in 2 to 3 years will earn 6.45%, while longer-term deposits with terms of 3 to 5 years and 5 to 10 years will return 6.30% and 6.05%, respectively.

Additionally, SBI’s special deposit scheme, the Amrit Vrishti (444 days), will now offer 6.60%, down from 6.85%. However, senior depositors continue to receive added benefits — an additional 50 basis points for senior citizens and 60 basis points for super senior citizens over the standard card rates.

This cut in the State Bank of India’s home loan interest rate is part of a broader wave of rate adjustments by commercial banks following the Reserve Bank of India’s announcement. Union Bank of India also revised its RLLR and EBLR down by 50 basis points. At the same time, HDFC Bank adjusted its fixed deposit slabs, offering a maximum of 6.6% on amounts below ₹3 crore, which is slightly lower than its previous rate of 6.85%.

The drop in SBI housing loan interest rates may revive consumer confidence, particularly among first-time homebuyers and salaried professionals. With borrowing costs reduced, many may see this as an opportune moment to purchase property or refinance existing loans.

The revised State Bank of India housing loan interest rate ensures that rate cuts by the central bank are passed on swiftly to end consumers, a feature inherent in the repo-linked lending system. For those comparing options, the current SBI bank home loan percentage stands out as one of the most borrower-friendly rates in the market.

As the SBI home loan interest rate adjusts in tandem with monetary policy and becomes more accessible, analysts expect a modest revival in home loan enquiries and disbursements over the next two quarters.

For borrowers seeking stability amid economic uncertainty, the revised SBI housing interest rate offers a breather — and perhaps, a reason to finally take that long-postponed step towards home ownership.