SBI Slashes MCLR & EBR Rates; Cheaper EMIs for Home Loans & Corporate Loans
Updated on: 08 Jan 2024 // 2 min read // #mmm news
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State Bank of India has further announced a reduction in key lending rates including Marginal Cost of Fund Based Lending Rate (MCLR) and External Benchmark Rate (EBR) by 25 bps and 40 bps respectively, thereby ensuring reduced EMIs and rate of interest for existing as well as new borrowers.

The decision comes following 40 bps repo rate cut by RBI on May 22. Since March this year, the RBI has reduced repo rate by 115 bps resulting in consecutive cuts in lending rates by banks. With falling repo rates both External Benchmark Rates as well as Repo Linked Lending rate (RLLR) fall further with almost immediate effect.

The one year MCLR now stands at 7 % p.a. This is 13th consecutive cut in the MCLR by SBI.The new rates will be effective from June 10, 2020.

The new EBR will now be 6.65% from July 1, 2020. The existing EBR is 7.05%. The RLLR was already reduced to 6.25% from 6.65%, effective from June 1, 2020.

In the statement to media, SBI said that with current revision in the lending rates, EMIs for eligible Home Loan accounts linked to MCLR will be lower by Rs. 421 while those accounts that are linked with EBR or RLLR will be reduced by around Rs. 660 for a 30-year loan of 25 lakh.

Loan amount for 30 years  
(in Rs.)
EMI reduction for Home Loans linked to MCLR (in Rs.)EMI reduction for Home Loans linked to RRL/EBR (in Rs.)

25 Lakh



50 Lakh



1 crore



The reduction in MCLR will benefit retail SBI Home Loan customers who borrowed before October 2019. The corporate loans linked to MCLR will also benefit.

In this falling rate regime, banks are consistently cutting down borrowing as well as deposit rates. On May 27, SBI had slashed fixed deposits rates by up to 40 bps. This was second cut in the same month.