SBI cuts external benchmark-based rate by 25 bps

The country's largest lender State Bank of India (SBI) on Monday announced a reduction in its external benchmark-based rate by 25 basis points to 7.80 percent from 8.05 percent. The new rates will be applicable from January 1, 2020, the bank said in a statement.

SBI "has announced the reduction in its external benchmark-based rate (EBR) by 25 basis points to 7.80 percent p.a from 8.05 percent per annum with effect from January 1, 2020," it said. With this reduction, interest rate for existing home loan customers as well as micro, small and medium enterprises (MSME) borrowers who have availed loans linked to external benchmark based rate would come down by 25 basis points, it said.

The new home buyers will get loans at an interest rate starting from 7.90 percent per annum compared to earlier 8.15 percent per annum, it said.