Big relief for everyone, SBI has made loans cheaper, know who will benefit

A very good news for SBI customers. India’s largest government bank has made a big decision. RBI has just lowered the repo rate by 25 basis points, marking the first cut in five years. Following this move, SBI, the largest bank in the country, has also slashed interest rates on various loans. They’ve made many new retail and business loans cheaper, which are tied to the External Benchmark Rate (EBR).

This change makes it easier to secure a home loan. Currently, home loans linked to the EBR are at 8.9%, factoring in RBI’s repo rate of 6.25% plus a spread of 2.65%. Depending on your credit score, home loan rates will now range from 8.25% to 9.2%. The home loan maxgain (overdraft) option is available between 8.45% and 9.4%, while top-up loans start from 8.55% and can go up to 11.05%. For top-up (overdraft) loans, the rates are between 8.75% and 9.7%.

If you’re looking for loans against property, those are available at rates from 9.75% to 11.05%. Senior citizens can get a reverse mortgage loan fixed at 11.3%. The YONO Insta Home Top-up Loan is being offered at 9.1%. Keep in mind that interest rates are influenced by your CIBIL score. Bankers mention that business loans are tied to the Marginal Cost of Funds (MCLR), which will only decrease when deposit interest rates drop. Interestingly, HDFC Bank raised its MCLR last week, even after the RBI’s rate cut.

For auto loans, SBI’s rates are linked to the one-year MCLR, currently at 9%. These rates will only decrease when deposit costs go down. The Standard Car Loan, SBI Car Loan, NRI Car Loan, and Assured Car Loan Scheme have rates ranging from 9.2% to 10.15%. The Loyalty Car Loan Scheme offers slightly better rates, from 9.15% to 10.1%, depending on your credit profile.

If you’re interested in electric vehicles, the SBI Green Car Loan is available at rates between 9.1% and 10.15%. Two-wheeler loans are priced from 13.35% to 14.85%, with a 0.5% discount for electric vehicles. SBI’s rate cuts indicate their aim to stay competitive while also encouraging green vehicle adoption.