SBI

SBI Slashes Home Loan Rates! New EBLR Update Effective From June 17, 2025

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India’s largest public sector bank, State Bank of India (SBI), has made a major announcement that brings relief to millions of home loan seekers and existing borrowers. Starting June 17, 2025, SBI has officially reduced its External Benchmark Lending Rate (EBLR), resulting in lower home loan interest rates across the board. This move is expected to ease EMIs and boost demand in the housing market.

What Is the New EBLR and What Does It Mean for You?

According to SBI’s latest release, the revised EBLR has been cut by 15 basis points and now stands at 8.40% plus CRP (Credit Risk Premium), down from the previous 8.55%. This reduction directly impacts all new floating rate home loans linked to the EBLR and even existing ones, if opted. With this revision, customers can now enjoy more affordable EMIs, especially in the affordable housing segment.

Impact on Home Loan Interest Rates

After the latest cut, SBI’s home loan interest rates now start from as low as 8.75% for borrowers with high credit scores. Depending on credit rating, loan tenure, and amount, the rates can vary. However, the overall cost of borrowing has become significantly cheaper, making this a favorable time for aspiring homeowners to take the plunge.

Why Did SBI Cut Rates Now?

Experts believe that this strategic move by SBI is aligned with current liquidity conditions and RBI’s guidance on supporting credit flow. Amidst stable inflation and a recovering real estate market, this reduction is aimed at attracting more home loan applications during the second quarter of FY25.

Should You Refinance or Apply Now?

If you’re an existing borrower paying a higher rate under an older MCLR or Base Rate structure, this is a good time to check if switching to EBLR could save you money. New borrowers can also take advantage of the lower rates, especially with many developers offering festive season discounts and attractive payment plans.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult their bank or a licensed financial advisor before making any loan-related decisions. Interest rates mentioned are as per SBI’s official update as of June 17, 2025.

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