SBI’s Independence Day Gift! MCLR Cut by 5 bps From August 15; Check How Much Your EMI Will Drop

The State Bank of India (SBI), the country's largest public sector bank, has announced a reduction in its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points (bps) across all loan tenures. The revised SBI MCLR rates will be effective from August 15, 2025, benefiting borrowers with loans linked to MCLR. SBI made this move following the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 5.5% in its latest Monetary Policy Committee meeting.

New SBI MCLR Rates from August 15

According to the bank's latest update, the SBI MCLR cut will impact loan rates for home loans, car loans, and personal loans. There is a uniform 5 bps reduction across all maturities, making SBI loans marginally cheaper for eligible borrowers. The revised rates are as follows:

Overnight MCLR: 7.90%

One Month MCLR: 7.90%

Three-Month MCLR: 8.30%

Six-Month MCLR: 8.65%

One Year MCLR: 8.75%

Two-Year MCLR: 8.80%

Three-Year MCLR: 8.85%

What is MCLR, and How Does It Affect You?

The Marginal Cost of Funds-Based Lending Rate (MCLR) is the minimum interest rate below which banks generally cannot lend, except in certain cases. It serves as a benchmark for determining lending rates on loans such as home loans, personal loans, and corporate credit. MCLR is calculated based on the bank's cost of funds, operating expenses, changes in the Reserve Bank of India's repo rate, and a tenor premium for longer-duration loans. Any revision in MCLR directly impacts borrowers, as it can lead to changes in their loan EMIs.

If your loan is linked to SBI's MCLR, your EMI will change when your loan comes up for its reset. With SBI cutting MCLR rates, many borrowers could see their interest costs go down. However, the exact savings will depend on how long your loan is for and when your reset date comes.

SBI Share Price Performance

At the end of Thursday's trade, State Bank of India (SBI) shares closed at Rs. 825.50, marking a gain of Rs. 3.65 or 0.44% for the day. Over the past five trading sessions, SBI's share price has remained largely steady, recording no percentage change. However, on a monthly basis, the stock has slipped by 1.11%. In the last six months, SBI shares have delivered a robust 13.44% rise, reflecting strong medium-term momentum. On a year-to-date (YTD) basis, the stock has posted a gain of 4.07%, indicating steady growth in 2025 so far.