The State Bank of India (SBI), the nation’s largest lender, has recently brought some great news for home loan borrowers. Effective April 15, 2025, SBI has slashed its lending rates by 25 basis points, following a similar reduction by the Reserve Bank of India (RBI) in its policy rate. This move is set to make home loans more affordable for both new and existing customers.
Key Information: What’s Changing?
SBI has lowered two of its key lending rates—the External Benchmark Based Lending Rate (EBLR) and the Repo Linked Lending Rate (RLLR)—by 25 basis points (0.25%).
- EBLR has been revised from 8.90% to 8.65%.
- RLLR has dropped from 8.50% to 8.25%.
SBI Home Loan New Interest Rates
SBI home loan interest rates are adjusted based on the borrower’s creditworthiness, represented by the CIBIL score. Higher scores generally result in lower interest rates, helping borrowers save on their loan repayments.
| CIBIL SCORE | EBR+CRP | Proposed BSP/BSD | Effective Rate |
|---|---|---|---|
| >= 825 | EBR+0.43 | -1.08 | 8.00% |
| 750 – 824 | EBR+0.43 | -0.88 | 8.20% |
| 700 – 749 | EBR+0.43 | -0.78 | 8.30% |
| 650 – 699 | EBR+0.43 | -0.43 | 8.65% |
| 550 – 649 | EBR+0.43 | -0.13 | 8.95% |
| NTC* (101-150) | EBR+0.43 | -0.43 | 8.95% |
| NTC* (151-200) | EBR+0.43 | -0.88 | 8.20% |
| NTC* (No Score/-1) | EBR+0.43 | -0.78 | 8.30% |
CRP refers to the Credit Risk Premium, added based on the borrower’s credit risk.
BSP/BSD are proposed adjustments for the borrower’s credit risk.
SBI Home Loan Top Up Interest Rates
SBI home top-up loans can be availed based on the borrower’s existing home loan and their credit score. The better the score, the more favorable the interest rate.
| CIBIL SCORE | EBR+CRP | Proposed BSP/BSD | Effective Rate |
|---|---|---|---|
| >= 825 | EBR+0.10 | -0.45 | 8.30 |
| 750 – 824 | EBR+0.10 | -0.15 | 8.50 |
| NTC* (101-150) | EBR+0.10 | -0.15 | 8.50 |
| NTC* (151-200) | EBR+0.10 | -0.15 | 8.50 |
| 650 – 699 | EBR+0.10 | 0.05 | 8.80 |
| 550 – 649 | EBR+0.10 | 0.15 | 9.00 |
| NTC* (No Score/-1) | EBR+0.10 | 0.25 | 9.10 |
BSP/BSD: Refers to the bank’s adjustments based on the borrower’s credit risk./
Latest PLAP (Personal Loan Against Property) Interest Rates
Here, you can see the interest rates for Personal Loans Against Property (PLAP) offered by SBI. These loans allow borrowers to pledge their property for a loan, with rates depending on the CIBIL score.
| CIBIL SCORE | EBR + CRP | Proposed BSP/BSD | Effective Rate |
|---|---|---|---|
| 800 and above | EBR + 0.10 | 0.75 | 9.50 |
| 750 – 799 | EBR + 0.10 | 0.75 | 9.50 |
| 700 – 749 | EBR + 0.10 | 0.85 | 9.60 |
| 650 – 699 | EBR + 0.10 | 1.95 | 10.70 |
| 600 – 649 | EBR + 0.10 | 2.05 | 10.80 |
| NTC (101 – 150) | EBR + 0.10 | 1.95 | 10.60 |
| NTC (151 – 200) | EBR + 0.10 | 1.85 | 10.60 |
| NTC (No Score / -1) | EBR + 0.10 | 1.85 | 10.60 |
Read More: SBI Privilege Home Loan
Additional BSP (Basis Points) Over Home Loan and HR Loan ROI
This table highlights the additional interest rate adjustments (in Basis Points) for specific products offered by SBI. These adjustments are based on the type of loan and are added to the home loan or HR loan interest rates.
| Product Name | Additional BSP Over HL & HR Loan ROI |
|---|---|
| Maxgain | 20 BPS |
| CRE Home Loan (TL) | 20 BPS |
| CRE Home Loan (Maxgain) | 40 BPS |
| Tribal Plus | 10 BPS |
| Suraksha Loan | 20 BPS |
| Top-up OD | 20 BPS |
These adjustments vary based on the loan type and the borrower’s credit profile.
Suggested Read: Top 5 Banks for Home Loans in Bangalore
How Much Can You Save with the New SBI Home Loan Interest Rates?
Let’s take a closer look at how much you can save with the new SBI home loan interest rates, using a detailed case study.
In this example, we’ll compare the monthly EMI and total repayment for a ₹80 lakh home loan, assuming different interest rates before and after the rate reduction.
Loan Details Before and After the Rate Cut
| Parameter | Before Rate Cut (8.50% p.a.) | After Rate Cut (8.00% p.a.) | Difference/Savings |
|---|---|---|---|
| Loan Amount | ₹80,00,000 | ₹80,00,000 | No Change |
| Interest Rate | 8.50% p.a. | 8.00% p.a. | Reduced by 0.50% |
| Tenure | 30 Years | 30 Years | No Change |
| EMI | ₹61,513.08 | ₹58,701.17 | ₹2,811.91 (Savings per month) |
| Total Interest Paid | ₹1,41,44,709 | ₹1,31,32,421 | ₹10,12,288 (Total Savings) |
| Total Repayment | ₹2,21,44,709 | ₹2,11,32,421 | ₹10,12,288 (Total Savings) |
Monthly EMI Comparison
| Month | Old EMI (₹) | New EMI (₹) | Monthly Savings (₹) |
|---|---|---|---|
| Month 1 | 61,513.08 | 58,701.17 | 2,811.91 |
| Month 2 | 61,513.08 | 58,701.17 | 2,811.91 |
| … | … | … | … |
| Month 360 | 61,513.08 | 58,701.17 | 2,811.91 |
| Total | ₹2,21,44,709 | ₹2,11,32,421 | ₹10,12,288 |
- Savings Over 30 Years: With the reduced interest rate, you save over ₹10 lakh in total interest payments.
- Long-Term Financial Relief: Lower EMI means more disposable income for other financial goals and obligations.
- Better Loan Flexibility: The rate cut gives you the flexibility to prepay the loan or invest the saved amount elsewhere.
Must Read: Best Property Valuation Practices
Expert Opinions: A Strategic Move
Financial experts believe this rate cut will benefit millions of borrowers across the country. According to a recent statement from SBI, “The reduction in rates will enhance affordability for borrowers, thereby boosting demand in the housing sector, which is a key driver of the economy.”
RBI’s move to cut rates aligns with its broader strategy to revive economic growth by making borrowing more attractive. Experts also point out that with the housing sector witnessing growing demand, this rate cut could act as a catalyst for further recovery in the real estate market, encouraging more prospective homebuyers to take the plunge.
Suggested Read: What is Reducing Rate Home Loans?
What Does SBI Rate Reduction Mean for You?
Recent reductions in benchmark rates, such as the EBLR (External Benchmark Lending Rate) and RLLR (Repo Linked Lending Rate), have created opportunities for both existing borrowers and aspiring homeowners. Here’s how these changes could benefit you:
For Existing Borrowers:
- If your home loan is tied to floating rates linked to the EBLR or RLLR, your Equated Monthly Installments (EMIs) will automatically decrease.
- No action is needed—your bank will adjust payments by May 2025.
- This adjustment could provide immediate financial relief, especially if you’ve been struggling with higher repayments.
- Lower EMIs mean more flexibility in managing your budget or allocating funds to other priorities.
SBI’s Marginal Cost of Funds-Based Lending Rate (MCLR) remains unchanged at 9% (1-year) and 9.10% (3-year). This means fixed-rate borrowers won’t see changes, but floating-rate holders gain an edge.
For First-Time Homebuyers:
- This is an opportune moment to consider entering the property market.
- With reduced interest rates, securing a home loan now could lead to significantly lighter EMIs, making homeownership more affordable.
- Lower monthly payments can ease the financial strain, allowing you to plan your finances with greater confidence.
Suggested Read: RBI Repo Rate Cut 2025
Check Your Revised SBI Home Loan EMI Now!
Home Loan Interest Rates by Top Banks
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.00% p.a. onwards | 8.00% p.a. onwards | 8.00% p.a. onwards |
| HDFC Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Punjab National Bank | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. |
| Bank Of Baroda | 8.40% onwards | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. |
| Bank of India | 8.40% p.a onwards | 8.40% p.a onwards | 8.40% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
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Frequently Asked Questions
SBI offers home loans starting at 8.00% p.a., varying by loan type, CIBIL score, and scheme. For example, SBI Maxgain (Overdraft) starts at 8.70% p.a., while Tribal Plus loans begin at 8.60% p.a. Women borrowers receive a 0.05% concession.
SBI Home Loans offer a maximum tenure of 30 years for most schemes like Regular, NRI, and Flexipay. Tribal Plus loans have a 15-year limit, while Realty Plot Loans extend up to 10 years.
Applicants must be 18–70 years old (varies by scheme), with a minimum income of ₹15,000–₹20,000/month. Salaried, self-employed, NRIs, and defense personnel are eligible. Credit score, income stability, and property type also influence approval.
Yes. Under Section 80C, claim up to ₹1.5 lakh on principal repayment. Section 24(b) allows ₹2 lakh interest deduction for self-occupied homes. Joint loans double these benefits.
Yes. SBI offers Balance Transfer with competitive rates. Submit your current loan details, property documents, and a ₹5,000 + GST fee for switching. Processing takes 15–30 days.
Reach SBI at 1800 1234 / 1800 425 3800, email customercare.homeloans@sbi.co.in , or visit their Mumbai office. Use SMS “UNHAPPY” to 8008 20 20 20 for grievances.
Existing SBI borrowers can avail Top-Up Loans for personal needs at 8.80%–11.30% p.a. The YONO Insta Top-Up offers digital disbursal with minimal paperwork and a ₹2,000 + GST fee.
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