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If you too are looking to buy your own house and are looking towards a home loan for that, then there is good news for you. SBI has given a big relief to those taking home loans as well as personal loans. State Bank of India (SBI) has announced a cut in EBLR and repo-linked lending rate applicable on various loans. This comes after the Reserve Bank of India (RBI) decided to cut the repo rate by 25 basis points (bps) from 6.50% to 6.25% in its MPC meeting last week. The new rates have come into effect from today i.e. 15 February 2025.

RBI cut the repo rate by 25 basis points last week, after which SBI has now announced a cut in EBLR and RLLR. However, the bank has not made any change in the Marginal Cost-Based Lending Rates and Benchmark Prime Lending Rates. Due to the reduction in EBLR by RBI, people taking home loans will get a big relief. Their EMI will be reduced. Let's understand what EBLR is.

What is EBLR

EBLR means External Benchmark Lending Rate. SBI has adopted the repo rate as an external benchmark to link its floating rate home loans from 01.10.2019. The interest rates of all floating-rate home loans are linked to external benchmarks. Therefore, the benefit of the reduction in EBLR rate will be directly available to home loan borrowers.

What is the rate now?

EBLR has been reduced by 0.25% (25 basis points). This means that borrowers of loans linked to EBLR (such as home loans, personal loans, and other retail loans) can get the benefit of lower interest. Till now EBLR was 9.15% + CRP + BSP. But from February 15, i.e. today, it will become 8.90% + CRP + BSP.

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