SBI Reduces Lending Rates Following RBI's Move
New Delhi: The State Bank of India (SBI), the largest bank in the country, has announced a reduction in its lending rates by 25 basis points, following a similar move by the Reserve Bank of India (RBI). This adjustment is set to make borrowing more affordable for both new and existing customers.
As a result of this latest change, SBI's Repo Linked Lending Rate (RLLR) will decrease to 8.25 percent. Additionally, the External Benchmark Based Lending Rate (EBLR) will also drop by 25 basis points, bringing it down to 8.65 percent. These new rates will take effect from April 15, 2025, as per the latest updates on SBI's official website.
This rate cut aligns with the RBI's recent decision to lower its key interest rate by 25 basis points for the second consecutive time, aimed at bolstering economic growth amidst potential trade tensions with the United States.
Moreover, SBI has also reduced its deposit rates by 10 to 25 basis points, effective from April 15. For fixed deposits under Rs 3 crore, the interest rate for 1-2 year term deposits will now be 6.70 percent, down from 6.80 percent, while deposits maturing in two to less than three years will yield 6.90 percent, a decrease from 7 percent.
For fixed deposits exceeding Rs 3 crore, the interest rate for terms of 180 to 210 days has been lowered by 20 basis points to 6.40 percent, and for terms of 211 days to less than one year, it has been reduced by 25 basis points to 6.50 percent.
In the case of 1-2 year fixed deposits, the new rate will be 6.80 percent, down from 7 percent, and for 2-3 years, it will be 6.75 percent, also a reduction of 25 basis points.
SBI's green rupee term deposit is available for three specific tenors of 1111, 1777, and 2222 days, at a rate 10 basis points below the card rate.
The special tenor scheme of '444 days' (Amrit Vrishti) will offer an interest rate of 7.05 percent starting April 15, 2025, with senior citizens receiving a rate of 7.55 percent and super senior citizens getting 7.65 percent.
In a related move, HDFC Bank has also cut its savings account interest rate by 25 basis points to 2.75 percent, the lowest among its private sector competitors. For balances exceeding Rs 50 lakh, the rate is now 3.25 percent, down from 3.5 percent, effective from April 12.
Additionally, the Bank of India has discontinued its 400-day special deposit scheme that offered 7.3 percent interest. It has also reduced its home loan interest rates by 25 basis points, now standing at 7.9 percent per annum based on CIBIL scores, effective from April 15, 2025.
Bank of India has similarly lowered interest rates by 25 basis points across various retail loan products, including vehicle loans, personal loans, loans against property, education loans, and Star reverse mortgage loans.
