State Bank of India (SBI) has given a big relief to crores of customers. After the Reserve Bank of India (RBI) cut the repo rate by 0.25%, SBI has reduced its External Benchmark Lending Rate (EBLR) from 8.90% to 8.65% and Repo Linked Lending Rate (RLLR) from 8.50% to 8.25%. These new rates have come into effect from April 15, 2025. The bank clarified on its website, “The change in repo rate will affect the interest rates of home loans and other floating rate loans.” This will reduce the EMI of customers taking floating rate loans in particular.

However, there is no change in the Marginal Cost of Funds Based Lending Rate (MCLR), which remains stable at 9% for one year and 9.10% for three years. Financial expert Anil Mehta said, “This move is a relief for the middle class, especially for home and auto loan borrowers.” The repo rate is now at 6.25%, which has given banks a chance to give cheaper loans. This decision is important towards boosting the economy and reducing the burden of customers, although MCLR based borrowers may have to wait for now.