SBI and IOB Cut Lending Rates Boosting Borrower Affordability

State Bank of India and Indian Overseas Bank have slashed lending rates by 25 basis points following the Reserve Bank's policy rate cut, making EMIs cheaper and supporting borrower affordability. These reductions come into effect from December 15, 2025, aiding both retail and corporate customers.

State Bank of India (SBI), the country's largest lender, has announced a reduction in its lending rate by 25 basis points. This adjustment comes on the heels of the Reserve Bank's policy rate cut, thereby lowering the cost of loans for both existing and new borrowers.

The revised rates take effect from December 15, 2025, lowering the External Benchmark Linked Rate (EBLR) of SBI by 25 basis points to 7.90 per cent. Similarly, the Marginal Cost of Funds-Based Lending Rate (MCLR) has been reduced across all tenures by 5 basis points, bringing the one-year maturity MCLR down to 8.70 per cent from 8.75 per cent.

Indian Overseas Bank (IOB) has similarly followed this trend, cutting its Repo Linked Lending Rate (RLLR) by 25 basis points to 8.10 per cent. These initiatives from major state-owned banks are set to lower Equated Monthly Instalments (EMIs) and aid borrower affordability, crucial for retail customers as well as MSMEs and corporate clients seeking lower operational costs.

(With inputs from agencies.)