Interest Rate Cuts: Big news for middle class people. Public sector State Bank of India (SBI) has given a big relief to customers taking home loans. At the same time, there is bad news for customers who make deposits. Similarly, HDFC Bank and Bank of India have given a shock to customers who make deposits.
Customers taking home loans have been given a big relief. After the reduction in repo rate by the Reserve Bank, SBI has reduced its interest rate by 25 basis points. This will make loans cheaper for both existing and new customers. After this reduction, SBI’s repo linked lending rate (RLLR) will come down by 25 basis points to 8.25 percent. The bank has also reduced the External Benchmark Based Lending Rate (EBLR) by the same basis points to 8.65 percent. According to the rate information updated on the SBI website, the revised rates will be effective from April 15, 2025.
Cut in interest rate on deposits too
Along with this, SBI has also reduced the interest rates on deposits by 0.10-0.25 percentage points. The new rates will be effective from April 15. Now, for fixed deposits up to three crore rupees for a period of one to two years, the interest rate will be reduced by 0.10 percent to 6.70 percent, while deposits with a maturity period of less than two to three years will get 6.90 percent interest instead of seven percent.
Recently, Bank of India has announced a reduction of 0.25 percent in the interest rate of its home loan. The bank said that with this revision in the interest rate on this home loan, the rate of home loan based on CIBIL score has come down to 7.90 percent per annum.
Apart from home loans, Bank of India has also cut interest rates by 0.25 per cent on select existing retail loan products including auto loans, personal loans, loan against property, education loans and star reverse mortgage loans. The bank has revised the interest rate paid to investors on its term plans.
HDFC Bank decision
Private sector HDFC Bank has reduced interest rate on savings accounts by 0.25 percent to 2.75 percent, which is the lowest among other private sector banks. According to HDFC Bank’s website, the interest rate for deposits above Rs 50 lakh is now 3.25 percent as against 3.5 percent. This rate cut is effective from April 12.