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SBI has reduced its MCLR by up to 25 basis points across all tenures, effective from July 15, 2025. The new rates range from 7.95% to 8.90%.
SBI cuts MCLR rate by 25 bps.
SBI MCLR Rate: The largest public lender of India State Bank of India (SBI) has announced to reduce marginal cost of funds-based lending rate (MCLR) up to 25 basis points on all tenures. The new rates are effective from July 15, 2025. The lender is now offering MCLR between 7.95% and 8.90% as compared to the previous rate between 8.20% and 9.10%.
It comes after the Reserve Bank of India-led by Sanjay Malhotra, unanimously decided to cut the repo rate by 50 bps to 5.50 per cent from 6 per cent. It was the third time that the central bank slashed the key benchmark lending rate, given that inflation was under control.
A cut in MCLR is generally good news for borrowers, as it can lead to cheaper loans and lower EMIs.
Latest SBI MCLR Rates Are As Follow:
| Tenor | Existing MCLR (In %) | Revised MCLR (In %) |
| Over night | 8.2 | 7.95 |
| One Month | 8.2 | 7.95 |
| Three Month | 8.55 | 8.35 |
| Six Month | 8.9 | 8.7 |
| One Year | 9 | 8.8 |
| Two Years | 9.05 | 8.85 |
| Three Years | 9.1 | 8.9 |
How Much Borrowers Would Expect To Save On Their EMIs?
For 6-month loans, the MCLR has been reduced from 8.90% to 8.70%, leading to estimated savings of around Rs 300 for a Rs 5 lakh loan and about Rs 600 for a Rs 10 lakh loan over the entire tenure.
For 1-year loans, the rate cut from 9.00% to 8.80% translates to savings between Rs 660–720 for Rs 5 lakh and Rs 1,320–1,440 for Rs 10 lakh.
Over a 3-year period, with the MCLR lowered from 9.10% to 8.90%, the total interest saved could be close to Rs 2,000 on Rs 5 lakh and about Rs 4,000 on Rs 10 lakh.
These savings are indicative and may slightly vary depending on the EMI plan and repayment structure. These benefits will be applicable only if the bank passes on the full interest rate cut to the borrowers.
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Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
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