Home loans from the State Bank of India (SBI) are set to become more affordable following the bank’s decision to reduce its key lending rates, including the Marginal Cost of Funds Based Lending Rate (MCLR), External Benchmark Lending Rate (EBLR), and base rate. The move is expected to bring relief to both existing and new borrowers amid easing interest rate conditions.

Key Highlights

• SBI cuts MCLR, EBLR, and base rates, making home loans more affordable.
• Borrowers may benefit through lower EMIs or reduced loan tenures following rate revisions.

With the downward revision, customers whose home loans are linked to these benchmarks can expect lower equated monthly instalments (EMIs) or shorter loan tenures, depending on their repayment structure. SBI’s rate cut aligns with broader trends in the interest rate environment and reflects the bank’s effort to pass on benefits to consumers.

The revised MCLR impacts borrowers with loans tied to internal benchmarks, while changes in the EBLR will benefit customers whose loans are linked to external benchmarks such as the Reserve Bank of India’s repo rate. As SBI is the country’s largest lender, adjustments to its lending rates often influence pricing trends across the banking sector.

Analysts believe the rate cut could support housing demand, especially among first-time buyers, by improving affordability at a time when property prices remain elevated in urban markets. Lower borrowing costs may also encourage refinancing and loan takeovers by customers seeking better terms.

Also Read: SBI Named World's Best Consumer Bank & Best Bank in India 2025

Overall, SBI’s move is seen as a positive development for homebuyers, reinforcing expectations that lending rates may continue to soften if inflation remains under control and monetary policy stays accommodative.